On May 9, 2025, Google reached a landmark settlement of $1.375 billion with the state of Texas over allegations of unlawfully collecting users’ private data. This settlement marks the largest single-state privacy settlement in U.S. history, far surpassing the company’s previous settlements, with the largest prior payout being $93 million. The lawsuit, filed by Texas Attorney General Ken Paxton, accused Google of collecting sensitive data, including geolocation, incognito searches, and biometric information, such as voiceprints and facial geometry, without proper consent.
The lawsuit, initiated in 2022, claimed that Google misled users about the extent of its data collection through its various services, even when privacy settings were enabled. While Google did not admit to any wrongdoing, the company acknowledged that the settlement addresses claims related to outdated practices. As part of the settlement, Google has pledged to update its product policies and enhance privacy controls to better protect user data moving forward.
This settlement is part of a broader trend in the tech industry, as legal challenges over data privacy continue to mount. In 2022, Google had already agreed to pay $391.5 million to 40 U.S. states regarding allegations of location tracking without user consent. Additionally, in 2024, Meta Platforms settled with Texas for $1.4 billion over its facial recognition practices. These high-profile legal battles underscore the growing scrutiny tech companies face regarding their data privacy practices and highlight the legal and financial risks involved.
The Texas settlement also reflects the rising importance of state-led legal actions against Big Tech. As tech companies continue to face increasing regulatory pressure, they must navigate not only federal regulations but also a patchwork of state-level privacy laws. The financial ramifications are substantial, with law firms involved in these cases billing millions in legal fees, further adding to the financial strain on tech giants.
In conclusion, the $1.375 billion settlement with Texas is a significant moment in the ongoing battle over tech companies’ data privacy practices. It highlights the increasing role of state governments in holding companies accountable for user privacy, and it marks a turning point in the legal landscape surrounding tech giants’ data collection practices.
