Alphabet’s (GOOGL) Google has been ordered to pay $425 million in a class action lawsuit over alleged privacy violations. The case, filed in 2020, claimed that Google collected and used user data even after individuals opted out of tracking features. It covers around 98 million users and 174 million devices, in which plaintiffs originally sought more than $31 billion in damages. The news comes as another federal judge has ruled in Google’s favor, allowing it to retain the Chrome browser in a separate antitrust case.
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On Wednesday, a federal jury in San Francisco found Google liable on two of three privacy claims but did not award punitive damages, ruling the company did not act with malice. Google plans to appeal the ruling, arguing the decision “misunderstands how our products work” and noting that the data was encrypted and not linked to individual users.
Here’s Google’s Position on Data Privacy
Following the verdict, a Google spokesperson explained that businesses using Google Analytics continued to receive limited traffic data even when users opted out of Web & App Activity tracking. Nonetheless, Google confirmed that this data did not reveal user identities, and emphasized that the company respects users’ privacy decisions.
The class action alleged that Google continued to collect user data through third-party apps such as Uber (UBER), Venmo, and Meta Platforms’ (META) Instagram. All of these apps use certain Google Analytics tools to monitor and optimize their operations.
Google has faced similar lawsuits alleging privacy violations. Earlier this year, Google paid nearly $1.38 billion to Texas over violations of state privacy laws. Additionally, in July, the company agreed to pay a $314.6 million fine for transferring data from idle mobile devices without their consent.
Is GOOGL Stock a Buy, Hold, or Sell?
On TipRanks, GOOGL stock has a Strong Buy consensus rating based on 27 Buys and nine Hold ratings. The average Alphabet price target of $226.34 implies 1.9% downside potential from current levels. Meanwhile, GOOGL stock has gained 22.1% so far this year.
