Google pays $1.4 billion to Texas for violating data privacy rights

In a significant legal settlement, Google agreed to pay nearly $1.4 billion to the state of Texas to address allegations concerning the unlawful collection and tracking of users' private data. Texas Attorney General Ken Paxton announced this settlement on a Friday in May 2025, following a lawsuit he filed against the technology giant in 2022. The lawsuit highlighted serious allegations including the clandestine tracking of Texas residents' movements, private searches, and biometric identifiers, such as voiceprints and facial geometry, through various Google products and services. The settlement marks the largest compensation ever secured by a state against Google for similar data privacy breaches. It encompasses two separate lawsuits aimed at holding the company accountable for its alleged misconduct, which Paxton characterized as a major victory for the protection of Texans’ privacy rights. The attorney general's legal action against Google was sparked by concerns over the aggregate data practices in the technology company’s Chrome browser's incognito mode and the transparency regarding location history on Google Maps. The settlement is particularly notable as it came just months after Texas received another $1.4 billion settlement from Meta, the parent company of Facebook and Instagram, to resolve claims related to unauthorized biometric data usage. Paxton emphasized his commitment to ensuring that Big Tech companies remain subject to the law, stating, “In Texas, Big Tech is not above the law.” Although the settlement requires no operational changes or new commitments from Google moving forward, company spokesperson José Castañeda noted that the agreement resolves a series of historical claims, many of which have been previously addressed through product policy modifications. Castañeda expressed Google's satisfaction in moving past these old issues and reaffirmed the company's intention to uphold robust privacy standards across its services. The fact that these legal challenges culminated in such a substantial settlement serves as a strong reminder of the ongoing scrutiny tech giants face regarding user data handling. In addition to the financial implications, this settlement sends a significant message to other tech companies about the necessity of transparency and consumer privacy compliance. The consequences of failing to uphold such commitments can lead to substantial legal and financial repercussions. This case, along with recent legal actions against other tech leaders, underlines a growing trend of state-level enforcement against perceived infringements upon user rights and privacy standards. The resolution provides a clear example of how legislative efforts can translate into real accountability within the tech industry, reinforcing the power states have in regulating Big Tech's activities.