Google Ordered To Pay $425 Mln In Privacy Lawsuit, Plans To Appeal

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(RTTNews) - A U.S. federal jury has ordered Google to pay $425 million in damages after finding the company breached user privacy by collecting data even after individuals had switched off a tracking feature in their accounts.

The class-action lawsuit, filed in July 2020, represented about 98 million users and 174 million devices. Plaintiffs argued that Google unlawfully accessed and stored data from mobile devices, including activity on apps such as Uber, Lyft, Amazon, Alibaba, Instagram and Facebook, despite privacy assurances under its Web & App Activity setting. Users had originally sought over $31 billion in damages.

The jury found Google liable on two of three privacy claims but did not conclude the company acted with malice. David Boies, the attorney for the plaintiffs, welcomed the verdict, calling it "a significant win for user privacy."

Google rejected the outcome and confirmed it will appeal. "This decision misunderstands how our products work," said company spokesperson Jose Castaneda. "Our privacy tools give people control over their data, and when they turn off personalization, we honor that choice."

The ruling adds to mounting legal challenges for Google. Just this week, a separate federal judge ruled the company would not have to sell its Chrome browser in an antitrust case but must end exclusive contracts and share search data with rivals. Google also faces a forthcoming trial over its monopoly in advertising technology.

Despite the privacy verdict, shares of parent company Alphabet surged more than 9 percent Wednesday following the favorable antitrust decision on Chrome.