The state of Texas has declared victory after reaching a $1 billion-plus settlement from Google parent firm Alphabet over charges that it illegally tracked user activity and collected private data.
Texas Attorney General Ken Paxton announced the state's highest sanctions to date against the tech behemoth for how it manages the data that people generate when they use 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 noted 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 dispute dates back to 2022, when the Texas Attorney General's Office filed a complaint against Google and Alphabet, saying that the firm was illegally tracking activities, including Incognito searches and geolocation. The state also claimed that Google and Alphabet acquired biometric information from consumers without their knowledge or consent.
According to Paxton's office, the Texas settlement is by far the highest individual penalty imposed on Google for alleged user privacy violations and data collecting, with the previous high being a $341 million settlement with a coalition of 41 states in a collective action.
The AG's office declined to explain how the funds will be used. However, the state maintains a transparency webpage that details the programs it funds through penalties. The settlement is not the first time Google has encountered regulatory issues in the Lone Star State.
The company previously agreed to pay two separate penalties of $8 million and $700 million in response to claims that it used deceptive marketing techniques and violated anti-competitive laws.
Texas also went after other tech behemoths, securing a $1.4 billion settlement from Facebook parent firm Meta over allegations that it misused data and misled its customers about its data gathering and retention practices.
The punitive restrictions are not uncommon in Texas, which has a long history of favouring and protecting major firms through legislation and legal policy. Larger states, such as Texas, can also have an impact on national policy and company decisions due to their population size.
