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Alphabet's affiliate, Google, incurred a fine of $425 million - a breakdown of the penalties

Tech giant faces financial penalty of $425 million over allegations of illicit data gathering; intends to challenge the decision.

Google Subsidiary Alphabet Faced with a $425 Million Fine - Key Points Revealed
Google Subsidiary Alphabet Faced with a $425 Million Fine - Key Points Revealed

Alphabet's affiliate, Google, incurred a fine of $425 million - a breakdown of the penalties

In a landmark decision, a federal court in San Francisco has imposed a $425 million fine on Google, the tech giant's parent company, Alphabet Inc., for violating privacy promises made under the "Web & App Activity" setting. The verdict, issued by a jury, follows a finding that Google accessed mobile devices of users over an eight-year period to collect, store, and use their data.

The class-action lawsuit, which was filed in 2020, covers around 98 million Google users and 174 million devices. The trial, which took place in the same court, centred around Google's collection of data from millions of users despite disabling a tracking feature. Initially, the plaintiffs had sought over $32 billion in damages.

However, the jury found Google liable in two out of three points but ruled that the company did not act intentionally. Google, in response, showed little reaction to the verdict.

The lawsuit covers the period from July 2016 to September 2024, and the fine is the largest privacy-related penalty ever levied against Google in the U.S. The case is a significant development in the ongoing debate about data privacy and the responsibilities of tech companies in protecting user information.

This decision comes at a time when tech giants are under increasing scrutiny for their data collection practices. The fine serves as a reminder for companies to uphold their privacy promises and respect user data, or face the consequences. The case against Google is expected to set a precedent for future privacy-related lawsuits against tech companies.

As the tech industry continues to evolve, so too will the regulations governing it. This verdict marks a step forward in ensuring that tech companies are held accountable for their actions and that user privacy is protected. The future of data privacy in the tech industry remains to be seen, but this decision is a clear indication that change is on the horizon.

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