Google has agreed to pay the State of Texas $1.375 billion to settle two landmark privacy lawsuits, marking one of the largest privacy-related state settlements in U.S. history. The cases, originally filed in 2022 by Texas Attorney General Ken Paxton, accused the tech giant of unlawfully collecting and using personal data, including location tracking, incognito browsing habits, and biometric identifiers, without users’ informed consent.
In a victory statement, Paxton declared, “In Texas, Big Tech is not above the law. For years, Google secretly tracked people’s movements, private searches, and even their voiceprints and facial geometry.” His office emphasized that this settlement represents “the highest recovery nationwide against Google for any attorney general’s enforcement of state privacy laws.”
Despite the record-setting payout, Google maintains its position of non-liability. In a statement, spokesperson José Castañeda said, “We are settling these matters without any admission of wrongdoing or liability, and without any changes to our products. This resolves a raft of old claims, many already addressed elsewhere.”
This isn’t Google’s first encounter with major legal pressure. The settlement follows a string of antitrust rulings, including two separate federal court decisions declaring that Google had illegally maintained monopolies in web search and ad tech. Remedies proposed include divesting core business components like Chrome and its ad server systems — measures that Google is actively appealing.
The Texas lawsuits alleged that Google used various services, such as Google Photos, Google Assistant, and location data, to collect sensitive user information for profit. Google’s previous argument, which partially succeeded in court, claimed that Texas courts lacked jurisdiction, as Google does not have sufficient physical presence in the state.
This privacy-focused lawsuit mirrors a previous settlement with Meta (Facebook’s parent company), which also agreed to pay a similar sum to Texas in 2023 for alleged facial recognition violations.
The settlement arrives amid a wave of escalating scrutiny on major technology companies, from consumer protection rules to antitrust crackdowns and emerging satellite internet regulation. Regulators at both the state and federal levels are intensifying efforts to hold companies accountable for privacy breaches, hidden fees, and monopolistic practices.
While Google doesn’t have to adjust its services under this agreement, the precedent set by this settlement could influence future court decisions, legislation, and consumer protections. With Paxton’s office touting the payout as a national record, other state attorneys general may feel emboldened to pursue similar actions against Google and other tech giants.
Paxton, already a controversial figure, announced plans to challenge U.S. Senator John Cornyn in next year’s midterm elections, possibly making tech regulation a political platform.
Google has weathered this latest legal storm with its finances intact, but the broader landscape suggests increasing risks for tech companies failing to prioritize user privacy and transparency. Expect more states to introduce or enforce digital privacy laws. Consumers may also see stronger tools to control or opt out of data tracking features. Google continues to face parallel battles and may be forced to rethink how it balances innovation with accountability.
