Google to Pay $1.4 Billion to Texas Over Illegal Data Collection: Largest Privacy Settlement in State History

Google to Pay $1.4 Billion to Texas Over Illegal Data Collection: Largest Privacy Settlement in State History

Austin, Texas – May 2025 — In a landmark victory for digital privacy advocates, tech giant Google has agreed to pay $1.4 billion to the state of Texas to settle claims that it illegally collected users’ private data without consent. The announcement was made on Friday by Texas Attorney General Ken Paxton, who described the settlement as a massive win in the fight against Big Tech’s alleged overreach into personal freedoms.

“In Texas, Big Tech is not above the law,” Paxton said.
“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.”

The Allegations: What Was Google Accused Of?

The lawsuit filed by Texas in 2022 accused Google of violating multiple privacy laws by secretly and unlawfully tracking users’:

  • Geolocation data
  • Private search history, including in Incognito mode
  • Biometric identifiers, such as voiceprints and facial geometry via services like:
    • Google Photos
    • Google Assistant
    • Nest products
    • Android-based services

Texas claimed these practices were done without clear user consent and in many cases without users being aware that such sensitive data was being collected.

The state asserted that such practices amounted to deceptive and invasive surveillance, directly violating Texas’ biometric privacy laws and consumer protection statutes.

Settlement Details: Historic Financial Penalty

The $1.4 billion settlement marks:

  • The largest amount ever won by a single state in a data privacy case against Google.
  • One of the most significant tech privacy settlements in U.S. history, rivaled only by Meta’s $1.4 billion settlement with Texas over similar biometric data allegations.

According to Attorney General Paxton, this massive financial penalty is meant to send a clear message to tech companies:

“We won’t allow corporations to monetize our rights and freedoms.”

Importantly, this settlement does not require Google to make new changes to its products. However, Google claims many of the policies at issue have already been addressed or modified in past years.

Google’s Response: “Old Claims, Already Resolved”

Google spokesperson José Castañeda responded to the announcement, stating:

“We are pleased to resolve these claims and put them behind us. Some of them relate to product policies we changed years ago. We’ll continue to invest in building robust privacy controls into our services.”

The tech giant also reiterated that:

  • The settlement does not admit wrongdoing
  • No additional product modifications are mandated under the agreement

Past Settlements and Ongoing Scrutiny

This is not the first time Google has settled with the state of Texas:

  • In December 2023, Google paid $700 million to resolve antitrust claims that it stifled competition in its Android app store.
  • The company also faced scrutiny for using location-tracking features in ways that were not transparent to users.

In both cases, Texas emphasized its position as a leader in tech regulation, asserting its independence from federal agencies and prioritizing state-level consumer protections.

Meta’s Similar Case

In parallel, Meta (Facebook’s parent company) also agreed to a $1.4 billion settlement with Texas in 2024 over similar accusations of collecting biometric data without consent through features like face recognition in photos and voice processing via Messenger.

National and Legal Implications

1. Privacy Reform Momentum

This high-profile case is likely to:

  • Reignite calls for a comprehensive federal privacy law
  • Inspire other states to pursue similar lawsuits or settlements

Texas has become a leading force in challenging the unchecked collection and commercialization of personal data by tech companies.

2. State Sovereignty in Tech Regulation

Attorney General Paxton’s aggressive approach highlights a trend where states act independently to regulate Big Tech, filling a void left by slow-moving federal agencies.

“Texas is charting its own path, ensuring no one — not even trillion-dollar companies — are beyond accountability,” said digital policy expert Rachel Montoya of the Center for Technology Ethics.

Public Reaction: A Mix of Praise and Concern

Privacy advocates have hailed the settlement as a “watershed moment” for user rights.

However, some critics point out:

  • Google doesn’t need to change products as part of the deal
  • The settlement may not do enough to deter future infractions

Digital Rights Watch, a nonprofit watchdog, stated:

“This is a financial victory but not necessarily a regulatory one. Without strict enforcement and policy change, the same practices could resurface in new forms.”

What Users Can Do: Tips to Protect Your Data

In light of ongoing privacy violations, users are advised to:

  • Review privacy settings in all Google services
  • Disable location tracking and voice history when not needed
  • Use secure browsers and privacy-focused search engines
  • Regularly delete stored data from Google Activity and Google Photos
  • Be cautious of default settings in apps and smart devices

Conclusion: A Wake-Up Call for Silicon Valley

This $1.4 billion settlement marks a critical moment in the evolution of digital privacy enforcement in the United States. While Google continues to maintain its innocence and says it has updated its policies, the size and seriousness of this payout underscore a broader shift:
Big Tech is no longer immune to accountability.

As states like Texas take stronger stances against unauthorized data collection, companies may be forced to rethink not only their privacy settings — but their entire data-driven business models.

 

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