Google hit with $314.6m US verdict for Android users

Google hit with $314.6m US verdict for Android users

Tech in Asia·2025-07-02 11:00

A jury in San Jose, California, has ruled that Google must pay over US$314.6 million to Android smartphone users for improperly collecting data from their devices.

The verdict, delivered on July 1, 2025, found that Google violated user rights by gathering information from idle Android phones without consent.

The class action lawsuit was filed in 2019 on behalf of about 14 million Californians.

Plaintiffs alleged that Google used the collected data for purposes such as targeted advertising and consuming users’ cellular data without permission.

The jury concluded that this practice imposed burdens on Android users for Google’s benefit.

Google plans to appeal the decision. Company spokesperson Jose Castaneda said that the ruling “misunderstands services that are critical to the security, performance, and reliability of Android devices.”

Google maintained during the trial that users consented to data transfers as outlined in its terms of service and privacy policies. The company argued that no harm occurred to users.

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🔗 Source: Reuters

🧠 Food for thought

1️⃣ Tech privacy violations face mounting financial penalties

Google’s US$314.6 million verdict represents part of an escalating pattern of financial consequences for data privacy violations across the technology sector.

In 2019, Facebook received a historic $5 billion fine from the FTC for privacy violations related to the Cambridge Analytica scandal, establishing a precedent for substantial penalties in data misuse cases 1.

European regulators have similarly imposed significant fines, with Meta facing a €1.2 billion ($1.3 billion) penalty in 2023 for improper data transfers to the US 2.

The total GDPR fines issued in Europe reached €1.2 billion in 2024 alone, following €2.9 billion in 2023, demonstrating the global trend toward stronger financial accountability for data privacy violations 2.

This Google case is particularly notable as it represents direct compensation to consumers rather than payments to regulatory bodies, potentially setting new expectations for how privacy violation remedies are structured.

2️⃣ Limitations of financial penalties as privacy enforcement tools

Despite the headline-grabbing size of privacy violation penalties, evidence suggests they may have limited effectiveness as deterrents for large tech companies.

A striking example is the Irish Data Protection Commission’s collection rate. Only $19.9 million of $3.26 billion in fines (0.6%) had actually been paid as of December 2024, highlighting the challenges in enforcement 2.

Tech companies routinely appeal privacy violation penalties through lengthy legal processes that can delay payment for years, during which they continue their business operations largely unchanged 2.

Regulatory authorities are increasingly recognizing these limitations, with the UK Information Commissioner explicitly questioning whether financial penalties truly deter violations or simply lead to extended litigation 2.

This pattern suggests that Google’s planned appeal of the $314.6 million verdict follows an established industry playbook, raising questions about whether monetary penalties alone can effectively protect consumer privacy.

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