Google has agreed to a $1.375 billion settlement with the state of Texas on May 2025 over allegations of data privacy violations, following a lawsuit led by Attorney General Ken Paxton.

This settlement represents a landmark in data privacy enforcement, setting a record for state-level penalties and highlighting the ongoing scrutiny tech companies face regarding user data practices.

Google Settles $1.375 Billion Data Privacy Lawsuit

Google faced a lawsuit from the state of Texas, led by Attorney General Ken Paxton, over alleged violations of data privacy laws. The lawsuit claimed Google unlawfully collected and tracked users’ personal data.

“Texas, Tech is above the… [For] years, [Google] secretly tracked [users’] movements, searches, even their [fingerprints] and through their [devices] and services. I fought and won.” – Ken Paxton, Attorney General, Texas

The settlement requires Google to pay $1.375 billion but does not mandate changes to its operations or admit wrongdoing. Google’s spokesperson, José Castañeda, emphasized that the settlement resolves past claims, stating, “[We are] pleased to [put] them behind, and continue to [build] robust privacy into our [products].” Source.

Texas Attorney General Declares Victory with Settlement

The financial impact on Google is notable, with potential significant distribution to the involved law firms. The settlement is considered a victory for Texas, as publicized by Attorney General Paxton.

While the settlement marks a record fine, it does not influence Google’s product development. Historically, such fines haven’t influenced major tech market practices, but underscore increasing regulatory pressures on data privacy.

Meta’s $14 Billion Case Sets Precedent

Similar cases include Meta’s 2024 settlement for biometric data privacy violations, amounting to $14 billion, indicating a growing trend in holding tech giants accountable for data misuse.

Experts suggest this settlement will push for stricter regulatory scrutiny on tech firms regarding data privacy practices, although long-term changes will rely on subsequent legal and policy adjustments.

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