Google Escapes Fresh $2B in U.S. Privacy Lawsuit
Synopsis
SAN FRANCISCO — In a major legal victory for Alphabet Inc., a federal judge has dismissed efforts to force Google to pay more than $2 billion in additional penalties. The ruling, issued on Friday,…
SAN FRANCISCO — In a major legal victory for Alphabet Inc., a federal judge has dismissed efforts to force Google to pay more than $2 billion in additional penalties. The ruling, issued on Friday, January 30, 2026, stems from a long-running class-action privacy lawsuit in which users accused the company of “secretly” tracking them even after they disabled tracking settings.
Chief U.S. District Judge Richard Seeborg rejected a request to require Google to hand over $2.36 billion in alleged profits, on top of the $425 million jury award finalised in September 2025. While the jury found Google responsible for improper tracking, the judge ruled that the extra billions and a sweeping ban on certain data practices were not legally warranted.
With nearly 100 million users affected, how did Google avoid such a massive penalty?
The Dispute Over Web & App Activity Privacy Settings
At the centre of the case is what happens when users flip a privacy switch. Millions believed that disabling the “Web & App Activity” setting would stop Google from collecting data about activity in other apps. The lawsuit argued that Google continued collecting that information anyway to support its advertising business.
In the September trial, jurors agreed that Google had violated users’ privacy but awarded only about $4 per person, far below the $31 billion in damages plaintiffs originally sought. Google has consistently denied wrongdoing, arguing that users were given clear choices and that the data was “de-identified,” meaning it was not tied to real names.
Why the Judge Rejected the $2 Billion Request
Plaintiffs’ attorneys claimed Google earned billions by ignoring users’ privacy preferences and should be forced to “disgorge,” or return, those profits. They also asked the court to immediately halt the disputed tracking practices.
Judge Seeborg disagreed. He found that plaintiffs failed to show “irreparable harm” that would justify permanently banning Google’s data collection. He also ruled that the calculations behind the $2.36 billion figure were not supported by strong evidence. Google further warned that stopping this data collection would “cripple” analytics tools relied on by millions of smaller app developers.
A Landmark Privacy Case for Millions of Users
The class-action lawsuit is vast, covering about 98 million users and roughly 174 million devices in the United States. Although Google avoided the additional multibillion-dollar penalty, it still faces the original $425 million verdict.
Google has already said it will appeal that decision, arguing the jury misunderstood how its technology works. Consumer attorneys, meanwhile, say they are satisfied that the judge left the jury’s verdict intact, calling it an important victory for digital privacy.
The Long History of Google Privacy Disputes
Known as Rodriguez v. Google, the case is one of several major legal challenges the company has faced over its handling of personal data. In recent years, Google has agreed to delete billions of records tied to “Incognito” browsing and paid hundreds of millions of dollars in other privacy settlements. The latest ruling shows that while courts are willing to punish tech giants for privacy violations, they remain cautious about imposing multibillion-dollar penalties without clear proof of financial gain.
What Happens Next?
The legal battle is far from over. Google plans to appeal the $425 million verdict in hopes of overturning it entirely. At the same time, lawyers representing users will continue pushing for stricter disclosure rules around tracking. For everyday users, the case is a reminder to review privacy settings carefully and understand how online “activity” data is actually used.
Key Highlights
- The Ruling: Judge Richard Seeborg rejected a $2.36 billion penalty against Google.
- The Case: Google was found liable in 2025 for tracking users who opted out of “Web & App Activity.”
- The Payout: The existing $425 million jury award remains in place for now.
- Class Size: The lawsuit represents roughly 98 million Google users.
- Next Steps: Google plans to appeal the original verdict to avoid paying any damages.
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