Google Avoids $2.36B Penalty in Privacy Lawsuit

Court Rejects $2.36 Billion Disgorgement Penalty

A U.S. federal judge has denied a request from consumers to impose an additional $2.36 billion penalty on Alphabet's Google. The penalty was sought over the company's past collection of data from users who had disabled a key privacy setting.

Overview of the Legal Proceedings

The ruling follows a September jury verdict that found Google liable for secretly collecting app activity data from millions of users, which resulted in a $425 million damages award. However, the jury issued an advisory verdict that disgorgement of profits was unwarranted. Plaintiffs had argued Google's data practices remained unchanged and sought the recovery of alleged ill-gotten gains.

Market and Legal Impact

This decision marks a significant legal victory for Google, preventing a multi-billion dollar financial penalty and a potential injunction that could have disrupted its ad-related data analytics services. Chief U.S. District Judge Richard Seeborg stated the plaintiffs failed to demonstrate irreparable harm and that their profit estimates were insufficiently supported. Google still intends to appeal the initial September verdict.

Conclusion and Future Outlook

While Google has avoided the substantial disgorgement penalty, the company still faces legal challenges related to the original liability verdict. The outcome of the appeal will be closely watched by the tech industry, as it holds implications for data privacy standards and corporate accountability in digital markets.

FAQ

Q: Did Google have to pay any money in this case?
A: A jury awarded plaintiffs approximately $425 million in damages in a prior verdict, which Google plans to appeal.

Q: Why was the $2.36 billion penalty rejected?
A: The judge ruled that the plaintiffs did not sufficiently prove irreparable harm or provide adequate support for their estimate of Google's profits from the data collection.

Source: Investing.com