Texas Secures Record $1.375bn Privacy Settlement from Google in Landmark Data Rights Case

In a negotiation that emphasizes the growing investigation of Big Tech data skills, Google has agreed to pay $ 1.375 billion in the state of Texas to resolve claims that it violated residents' privacy rights by unlawful monitoring and storing sensitive user data.

The announcement was made on Friday by Texas Attorney General Ken Paxton, who framed the deal as the biggest settlement-related privacy that a state against the tech giant-and a reference to the moment of his office's continued battle against what he described as the Silicon Valley's ignorance for consumer rights.

“For years, Google has secretly traced people's movements, private search, and even their voiceprints and facial geometry through their products and services,” Paxton said in a statement. “This $ 1.375 billion regulating is a major win for Texans privacy and told companies that they will pay the abuse of our trust.”

The negotiation came from two separate suits filed by Paxton's office in 2022. The suits accused Google of systematically collecting personal data without sufficient user permission, including biometric identities and location information, in violation of the biometric private laws of Texas and the Deceptive Trade Practices Act.

The center of claims is allegations that the Chrome's Incognito's Incognito mode is thinking that their activity is private, and location data is collected by Google Maps even when users have turned off location history settings. Further claims are tied to the biometric data collection through Google photos, where users' geometry and voiceprints are said to be used for features such as facial recognition without knowledge of permission.

Although Google denied any mistake and admitted that there was no responsibility as part of the negotiation, the financial penalty was a sign that state lawyers are willing to challenge powerful tech companies on how they collect and use consumer data.

Google spokesman José Castañeda said the regulation was “resolving a raft of old claims” that reminds the product policies that have “changed so long.” He emphasized that Google does not need to change any of its current services as a result of the agreement.

“It has organized a raft of old claims, many of which have been resolved elsewhere, about the policies of the product we have changed for a long time,” Castañeda said. “We are glad to put them behind us, and we will continue to build strong privacy controls in our services.”

However, the magnitude of the regulating, nearly $ 1.4 billion, which has ejected past agreements reached between other states and Google. It follows a similar $ 1.4 billion regulating Paxton's secure from Meta Platforms Inc. In 2023, involving unauthorized use of facial recognition technology on Facebook and Instagram.

Texas is leading a new front in tech regulation

The back-to-back billion-dollar position in Texas's position as the leader in handling tech firms responsible for violations of data privacy, especially by law enforcement biometric biometric level. Paxton's legal approach relies on the abduction of Texas's biometric statute, which was modeled in part after biometric information on Illinois (BIPA) privacy information-a law that led to several legal outcomes.

“Big tech is not above the law,” Paxton said.

Although federal data privacy law remained stuck to Congress, Texas retiring shows how the states enter the regulation vacuum. Experts say that increasing state increases can create a patchwork of privacy regimes nationwide, and increase pressure in companies to produce more clear and responsible data systems.

A warning to the industry

The regulating sends a strong message to other tech companies that rely on user data to empower their services. As regulatory investigation increases in both state and federal levels, industry players are likely to deal with the mounted of legal costs and reputation risks if found violations of local privacy laws.

What's more, the deal strengthens the growing relationship of biometric privacy – a subset of data rights that cover facial recognition, fingerprint recognition, voice recognition, and more. In tech companies increasing such features in their products, legal care around biometric data may be the next major battlefield.