Google settles nearly $1.4B Texas case for collecting personal data

The state of Texas is declaring victory after extracting a $1 billion-plus settlement from Google parent company Alphabet over allegations it illegally tracked user activity and collected personal data.

Texas Attorney General Ken Paxton announced what would be the largest fines the state has issued to date against the tech giant over the way it handles the data users generate when they access Google and other Alphabet services.

“For years, Google secretly tracked people’s movements, private searches, and even their voiceprints and facial geometry through their products and services. I fought back and won,” Paxton said in a May 9 statement announcing the settlement.

“This $1.375 billion settlement is a major win for Texans’ privacy and tells companies that they will pay for abusing our trust. I will always protect Texans by stopping Big Tech’s attempts to make a profit by selling away our rights and freedoms.”

The case dates back to 2022, when the Texas AG’s office filed a complaint against Google and Alphabet alleging that the company was illegally tracking activity, including Incognito searches and geolocation. The state also alleged that Google and Alphabet collected biometric data on users without their knowledge or consent.

Paxton’s office noted that the Texas settlement is by far the largest individual penalty to date against Google on allegations of user privacy violations and data collection, the previous high being a $341 million settlement deal with a coalition of 41 states in a collective action.

The AG’s office would not say how the money will be used. The state, however, maintains a transparency portal outlining programs it spends from fines it collects.

The settlement is not the first time Google ran afoul of regulators in the Lone Star State. The company previously agreed to pay out two separate penalties of $8 million and $700 million over allegations it engaged in deceptive marketing practices and violated laws on anticompetitive practices.

Texas also targeted other tech giants, extracting a $1.4 billion settlement from Facebook parent company Meta over allegations it similarly mishandled data and misled its users on its data collection and retention practices.

The harsh measures are something of an usual occurrence for Texas, which has a long history of being a state that favored and protected large businesses when it comes to legislation and legal policy.

Larger states such as Texas can also have an influence on the larger national policies and decisions of companies due to their share of the overall population.