Google Settles Texas Data Privacy Lawsuit with $1.4 Billion Payment

Google Agrees to Pay $1.4 Billion to Texas for Data Privacy Violations

Google has agreed to pay $1.4 billion to the state of Texas to settle claims that it improperly collected user data without permission. The settlement, announced by Texas Attorney General Ken Paxton, is the largest ever obtained from Google for similar data privacy violations. Paxton described the agreement as sending a clear message to tech companies that they cannot profit from ‘selling away our rights and freedoms.’

The state argued that Google unlawfully tracked users’ movements, private searches, and biometric data through its products, such as Google Photos and Google Assistant. Paxton claimed, for example, that Google collected millions of biometric identifiers, including voiceprints and records of face geometry. These actions, according to the state, violated consumer privacy rights and represented a significant breach of trust.

Google spokesperson José.Castaneda stated that the agreement settles an array of ‘old claims,’ some of which relate to product policies the company has already changed. ‘We are pleased to put them behind us, and we will continue to build robust privacy controls into our services,’ he said in a statement. The company also clarified that the settlement does not require any new product changes. This clarification aims to address concerns that the settlement might necessitate additional privacy measures.

According to the state’s attorney general’s office, the $1.375 billion settlement far surpasses any other state’s claims for similar violations. ‘To date, no state has attained a settlement against Google for similar data-privacy violations greater than $93 million,’ the statement noted. Even a multistate coalition involving forty states secured just $391 million – almost a billion dollars less than Texas’s recovery. The state’s statement called the agreement a ‘major win for Texans’ privacy’ and emphasized that it ‘tells companies that they will pay for abusing our trust.’

The settlement underscores the growing regulatory scrutiny of tech companies across the United States. As data privacy concerns continue to rise, the incident serves as a reminder of the potential financial and reputational consequences for companies that fail to comply with data protection laws. This case has also sparked discussions about the broader implications of such settlements, including the need for stronger regulatory frameworks to protect consumer data.