Google settles $5bn lawsuit over user privacy violation

Google, a multinational technology firm, has agreed to pay $5 billion to settle a class action alleging that it violated users’ privacy.

A class action is a civil lawsuit brought on behalf of a group of people or business entities who have suffered a similar loss.

The landmark case, filed in 2020, alleged that Google collected users’ data even when their browsers were set to “incognito” or “private” mode.

This allegedly turned Google into a vast trove of information on user preferences and potentially embarrassing behaviour.

The lawsuit argued that the firm could not continue its “covert and unauthorised data collection” from users without their consent.

While Google maintained that it was upfront about the data it collected in private browsing modes, many users assumed their activity was truly private.

Google claimed that collecting search history, even in private mode, helped websites “better evaluate the performance of their content, products, marketing and more”.

However, the court sided with the plaintiffs, ruling that Google’s practices were deceptive and violated user privacy.

On Thursday, Yvonne Rogers, a US district judge, put a scheduled trial for the case on hold in California, after lawyers said they had reached a preliminary settlement.

Rogers had rejected Google’s bid to have the case dismissed earlier this year, saying she could not agree that users consented to allow Google to collect information on their browsing activity.

While the terms of the settlement were not disclosed, lawyers are expected to present a formal settlement for the court’s approval by February 2024.

In addition to the lawsuit, Google is facing several other legal challenges related to its search and advertising practices.

Earlier this month, the company agreed to pay $700 million to settle a lawsuit accusing it of anti-competitive practices in its Play Store.