Alphabet’s (GOOGL) Google has been ordered to pay a $314.6 million fine in a U.S. court verdict for misusing customers’ cell phone data. A jury in San Jose, California, ruled on Tuesday that Google transferred data from customers’ cell phones while they were idle, without their consent. Google must pay the fine to Android smartphone users in California.
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The Class Action lawsuit was filed in 2019 on behalf of approximately 14 million Californians. The lawsuit described the company’s actions as “mandatory and unavoidable burdens shouldered by Android device users for Google’s benefit.”
Google Accused of Misusing Customers’ Cell Data
The jury agreed with the plaintiffs’ complaints that Google used customers’ data to send and receive information from their devices when they are not connected to a WiFi network. As a result, Google misused customers’ cell data, which they were paying for, without their consent. The company used this information for its own benefit, such as targeted advertising and enhancing its mapping capabilities.
Meanwhile, Jose Castaneda, a spokesperson for Google, stated that the company was unhappy with the verdict and would appeal. Castaneda also said that the verdict “misunderstands services that are critical to the security, performance, and reliability of Android devices.” Moreover, Google stated that no users were harmed in the process and that the transfers consumed less cellular data than sharing a single photo. Furthermore, Google claimed that customers consented to these transfers while agreeing to the company’s terms of service and privacy policies.
Another similar lawsuit was filed by a group in federal court in San Jose on behalf of the remaining 49 states, with a trial scheduled for April 2026. Google is facing several lawsuits alleging the company has misused its monopoly power to stifle competition. A federal judge could require Google to sell its Chrome browser and advertising businesses as a remedial measure related to these lawsuits.
Is GOOGL Stock a Good Buy Right Now?
Despite the ongoing challenges, analysts remain highly optimistic about Alphabet’s long-term stock trajectory. On TipRanks, GOOGL stock has a Strong Buy consensus rating based on 29 Buys and nine Hold ratings. Also, the average Alphabet Class A price target of $199.77 implies 13.6% upside potential from current levels. Year-to-date, GOOGL stock has lost 6.9%.
