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Google Avoids Billions in Data Penalties After US Privacy Lawsuit Ruling

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Google Avoids Billions in Data Penalties After US Privacy Lawsuit Ruling

Google secured a major legal win in a US privacy lawsuit on Friday. A federal judge rejected consumer demands for billions in additional penalties. The case focused on data collected from users who disabled a privacy setting. However, the court ruled the extra punishment was not justified. Chief US District Judge Richard Seeborg made the decision in San Francisco. As a result, Google avoided more than $2 billion in potential penalties.

Why Consumers Sought Extra Penalties

Consumers argued Google earned unfair profits from data tracking. Therefore, they asked the court to force Google to return $2.36 billion. Earlier, a jury found Google liable for collecting app activity data. That data came from users who turned off a tracking feature.
However, the same jury awarded only $425 million in damages. In addition, it advised against forcing Google to give up profits.

Court Rejects Disgorgement Request

Judge Seeborg agreed with the jury’s advice. He ruled the consumers failed to prove lasting or future harm. Because of that, the court saw no reason for a permanent ban. The judge also said profit estimates lacked strong evidence.
Meanwhile, Google warned that limits on data use would hurt app developers. According to Google, analytics tools support millions of apps worldwide.

What Happens Next for Google

Google continues to deny any wrongdoing in the case. However, the company plans to appeal the jury’s earlier verdict. The judge also rejected Google’s request to break up the class action. That class includes about 98 million users and 174 million devices.
Consumer lawyers welcomed the ruling’s clarity. Still, they criticized Google for not changing privacy practices. As a result, the case highlights ongoing tensions around digital privacy. It also shows how courts balance user rights with technology services.

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