Google’s $1.375 Billion Settlement with Texas: A Landmark in Data Privacy Enforcement

In a groundbreaking development that signals heightened scrutiny of tech giants’ data practices, Google has agreed to pay $1.375 billion to settle allegations by Texas that the company violated the state’s consumer protection laws through deceptive location tracking practices. The settlement, announced by Texas Attorney General Ken Paxton on Thursday, represents one of the largest privacy-related settlements in U.S. history.

“Today’s historic $1.375 billion settlement with Google is a significant victory for Texas consumers and their data privacy,” Paxton said in a statement released by his office. “For years, Google has been misleading Texans about its collection, use, and sale of their private location information.”

The case, which began with an investigation launched in 2018, centered on allegations that Google continued tracking users’ locations even after they had turned off location tracking settings. According to the Texas Attorney General’s office, the company used this data for targeted advertising while misleading consumers about their ability to control their privacy.

The settlement includes $1.1 billion in civil penalties and $275 million in attorney fees and costs, according to The Dallas Morning News. The funds will flow into the state treasury, though specific allocation details remain unclear.

In a statement on X (formerly Twitter), Paxton characterized the settlement as “the largest privacy settlement ever secured by a single state.” He added, “Google illegally collected Texans’ private location data without their knowledge and consent, and profited from this data through advertising.”

Google, while agreeing to the settlement, maintained that the case was based on “product features that are no longer in effect” and denied wrongdoing. “We have been clear about our location privacy settings for years and look forward to continuing to invest in products that put users in control of their data,” a Google spokesperson told The Verge.

The settlement comes amid increasing regulatory pressure on major technology companies regarding their data collection practices. Texas has been particularly aggressive in pursuing cases against tech giants, with Paxton filing multiple lawsuits against Google in recent years.

Taylor Goldenstein, a reporter for The Dallas Morning News, noted on X that the settlement amount represents “more than 10 times the state’s next-largest consumer protection settlement.”

Legal experts view this case as potentially influential for other states pursuing similar claims. Bloomberg Law reported that the settlement could provide a template for resolving other privacy-related disputes between states and technology companies.

The agreement requires Google to implement specific changes to its business practices, including improved disclosures about location data collection and use. The company must also provide clearer options for users to control their privacy settings.

This settlement follows a broader pattern of increased scrutiny of tech companies’ data practices. In 2022, Google agreed to pay $391.5 million to settle similar location tracking claims with 40 states, but the Texas settlement dwarfs that amount.

As consumers become increasingly concerned about digital privacy, this case highlights the growing willingness of state regulators to challenge powerful technology companies over their data collection practices, potentially reshaping how personal information is handled in the digital economy.