San Francisco, CA – Tech giant Google has reached a landmark $93 million settlement with the state of California to resolve allegations that it unlawfully collected consumer data without their informed consent. The announcement came in a statement issued by California Attorney General Rob Bonta on Thursday.
The California Department of Justice had conducted a comprehensive multi-year investigation, revealing that Google had been “deceiving users by collecting, storing, and using their location data for consumer profiling and advertising purposes without informed consent.” This data collection extended to the tracking of user locations even when the “location history” setting was turned off, albeit through different methods.
As part of the settlement, Google has agreed to take future actions aimed at preventing such practices, and these measures will apply not only in California but also across other states, according to the proposed order.
In response to the settlement, Google defended its position, citing improvements made in recent years. A spokesperson for the company pointed to a 2022 blog post that introduced transparency tools such as auto-delete controls and incognito mode on Google Maps.
Location-based advertising plays a pivotal role in Google’s business model, as it allows companies to tailor their content to specific geographic areas. Google also incorporates location data into its “behavioral profile” of users, which contributes to its advertising strategies.
Under the terms of the settlement, Google will be required to enhance transparency regarding its location tracking practices and inform users that their location information may be used for targeted advertisements. The proposed order is subject to court approval, as confirmed by the state’s attorney general.
The settlement comes amidst heightened scrutiny of Google’s business practices. A significant antitrust trial against the tech giant, initiated by the Biden administration in January, alleges that Google’s ad tech business should be broken up due to its purportedly anti-competitive actions. Google’s opening statement in the case emphasized its search engine’s popularity, exemplified by Apple’s choice to make Google the default search engine in its Safari browser.
Additionally, just last week, Google reached an agreement in principle with multiple U.S. states to settle an antitrust lawsuit related to its conduct in the Google Play Store. The lawsuit accused Google of inflating prices for paid apps and in-app purchases within the Android app market.
This settlement with California represents a significant step in Google’s ongoing efforts to address legal challenges and enhance transparency in its data practices. The tech giant will continue to navigate legal hurdles as it faces mounting scrutiny from regulators and lawmakers across the United States.
