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Google has agreed to pay a staggering \$1.375 billion to the state of Texas to settle lawsuits over unauthorized tracking of usersâ locations, data collection through incognito mode, and the harvesting of biometric dataâsetting a new benchmark in tech accountability. This payout marks the largest privacy-related settlement ever obtained by a single state in the U.S., overshadowing all previous penalties against Google for similar violations.
This legal triumph follows years of investigation and aggressive litigation by Texas Attorney General Ken Paxton. The lawsuit, initially filed in 2022, accused Google of breaching usersâ privacy rights even when Location History was disabled and incognito mode was in use. The case also highlighted Googleâs use of facial recognition technology and voice data collection without usersâ explicit consent.
In contrast to the \$391 million settlement reached by a coalition of 40 states and other smaller agreementsâincluding \$29.5 million to Indiana and Washington, and \$93 million to CaliforniaâTexas’s recovery dwarfs all other state-level fines combined. The message is clear: no tech company, no matter how large, is above the law.
Key Developments
Settlement Amount: Google will pay \$1.375 billion to Texas, a record-breaking fine in the context of privacy enforcement.
Original Lawsuit: Filed in 2022 by AG Ken Paxton, focusing on unlawful tracking via:
Geolocation
Incognito browsing
Biometric data (facial recognition and voiceprints)
Violation of Consent: Accusations include collecting sensitive data even when users disabled tracking features.
Google’s Defense: The company denies wrongdoing, asserting that product policies have already been updated and no changes will be made as part of the deal.
Precedent Comparison:
$391M â Settlement with 40 states (2022)
$93M â California (2023)
$29.5M â Indiana & Washington (2023)
Other Big Tech Settlements: In July 2024, Paxton also secured \$1.4 billion from Meta over illegal biometric data collection, reinforcing Texasâs aggressive privacy stance.
Chrome Incognito Mode: Part of the claims centered on Google misleading users about data collection during private browsing.
Google Maps Data Changes: From December 1, 2024, Timeline data will be stored locally on user devices, not in cloud accounts, reducing access to historical location data online.
Public Statement: AG Paxton emphasized that Texas will remain a watchdog against Big Techâs data misuse, promising continued vigilance to defend citizen rights.
What Undercode Say:
Texas has emerged as a dominant force in the battle over digital privacy, achieving what multistate coalitions could not: a financial penalty that actually hurts. This move sends ripples across Silicon Valley, clearly signaling that deceptive data practices are not just unethicalâthey’re legally and financially dangerous.
Googleâs legal troubles are not isolated. The
Moreover, Googleâs statement that it wonât be making any product changes as part of the settlement is telling. It shows that while fines may be monumental, they are still manageable for tech giants unless accompanied by enforceable behavioral corrections. This kind of resolution risks being perceived not as justice, but as a pay-to-play cost of doing business.
Texas’s litigation path, however, demonstrates what can be achieved when state agencies refuse to be intimidated by Big Tech. With previous victories against Meta and now Google, AG Ken Paxton is setting new standards in data privacy enforcement.
The broader implication for tech firms is sobering: massive settlements are no longer a collective affair requiring multi-state coalitions. Individual states canâand willâenforce their own consumer protection laws to extract substantial consequences from Silicon Valley. Texas is essentially rewriting the rules of engagement.
We are also seeing a strategic shift in how data is handled. Googleâs move to store location data locally suggests not just a nod to privacy but a way to preempt further legal challenges. By decentralizing sensitive data storage, they are reducing legal risk, but this also limits consumer functionalityâpotentially backfiring on user experience.
Lastly, Googleâs repeated claim that it has âalready changed its policiesâ yet continues to pay out billion-dollar settlements should raise eyebrows. If the policy updates were truly sufficient, why the record fines?
The answer lies in trust. Consumers may not understand every checkbox or data flow diagram, but they do understand betrayal. And this breach of trust is what continues to haunt Googleâs brand in the court of public opinion.
Fact Checker Results:
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The \$1.375B figure is confirmed as the largest privacy-related settlement by a single U.S. state.
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Google previously settled similar claims with multiple states, but no other state received more than \$93M.
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Texasâs AG has a verified history of pursuing large-scale privacy enforcement actions against Big Tech.
Prediction:
This historic settlement signals the beginning of a more fragmented and aggressive regulatory era in the U.S. Rather than waiting for federal laws or unified multistate efforts, states will increasingly act on their own to prosecute privacy violations. Expect more tech companies to proactively modify data practices, shift toward localized data storage, and increase transparencyâeven if only to shield themselves from billion-dollar payouts. Meanwhile, states like California, Illinois, and Florida may follow Texasâs lead with equally bold litigation strategies in the months ahead.
References:
Reported By: securityaffairs.com
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