In a significant development in the realm of data privacy law, Google has agreed to pay $1.375 billion to the State of Texas to resolve allegations of unlawful data collection practices.

This settlement, announced on May 9, 2025, represents the largest state-level settlement ever secured against Google concerning data privacy violations.

Background of the Lawsuit

The lawsuit, initiated in 2022 by Texas Attorney General Ken Paxton, accused Google of covertly collecting and utilizing users’ personal data without proper consent. The allegations centered on the company’s practices involving Incognito mode, Location History, and biometric data collection through services such as Google Photos, Google Assistant, and Nest Hub Max. Specifically, the state contended that Google tracked users’ geolocation, voiceprints, and facial geometry—even when users believed such tracking was disabled.

Terms of the Settlement

While Google did not admit to any wrongdoing, the company agreed to the settlement to resolve the claims. The financial details of the settlement’s allocation have not been disclosed, and notably, the agreement does not require Google to implement any new changes to its products. The company stated that the disputed practices were outdated and that it has since updated its product policies.

Broader Implications

This settlement is part of a broader trend of increasing scrutiny over tech companies’ data privacy practices. In 2024, Meta Platforms agreed to a $1.4 billion settlement with Texas over similar allegations related to biometric data use. Additionally, Google has faced other legal challenges, including a $700 million settlement in 2023 over anticompetitive practices concerning the Google Play Store. These cases reflect a growing emphasis on enforcing consumer protection laws and holding tech giants accountable for their data handling practices.

Conclusion

The $1.375 billion settlement between Google and Texas underscores the state’s commitment to safeguarding consumer privacy and holding companies accountable for unauthorized data collection. As technology continues to evolve, this case serves as a pivotal example of the legal system’s role in addressing the complexities of data privacy in the digital age.