Google to pay $1.38B to Texas over alleged privacy violations - Just the latest in a wave of legal troubles

Google has agreed to a substantial settlement of $1.375 billion with the state of Texas, resolving allegations that the tech giant violated users' data privacy. Texas Attorney General Ken Paxton announced the agreement on Friday last week, stating that it settles two lawsuits concerning three Google products and their alleged breaches of Texas consumer protection laws.

"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 through their products and services. I fought back and won,” Paxton said in a statement.

Attorney General Paxton did not indicate how the substantial funds would be utilized.

Google acknowledged the agreement in a statement from spokesperson José Castañeda, noting that it resolves "a raft of old claims...concerning product policies we have long since changed." The claims involved allegations related to Incognito mode, Location History, and the collection of biometric data. Google maintained that the agreement does not constitute an admission of wrongdoing. Castañeda added, "We are pleased to put them behind us, and we will continue to build robust privacy controls into our services.”

Part of a Bigger Picture

The Texas deal comes amid mounting legal and regulatory pressure on the tech giant across the US and Europe:

• Systemic Bias Lawsuit: Just days before the Texas settlement, Google agreed to pay $50 million to settle a class action lawsuit accusing it of systemic racial discrimination against Black employees. The lawsuit claimed that Black workers were steered into lower-paying roles and faced a racially biased workplace culture. Google denied wrongdoing but agreed to reforms and compensation.

• $3.34 Billion Lawsuit in Italy: Italy’s Moltiply Group is suing Google for €2.97 billion (approx. $3.34B), claiming its price comparison service “Trovaprezzi.it” was unfairly suppressed in search results from 2010 to 2017 to benefit Google Shopping. The claim follows a 2017 EU antitrust ruling and a final court defeat for Google in September.

Antitrust Battle in the US: Meanwhile, the U.S. Department of Justice is wrapping up a landmark antitrust case that could force Google to share search data with rivals. The FTC has backed the proposal, saying it includes adequate privacy safeguards and would push Google to improve user protections. The DOJ is also pushing for structural remedies—potentially requiring Google to sell off Chrome or end exclusive deals that keep it the default search engine.

All of this is unfolding as regulators express concern that Google’s dominance in search and data collection could extend into the AI era, where it already has partnerships and investments through firms like Anthropic.