Google Settles $5B Privacy Lawsuit By Deleting Browsing Data, Updating Incognito Mode

In a landmark resolution to a longstanding privacy lawsuit, Google has agreed to destroy billions of data records as part of a settlement valued at more than $5 billion. The lawsuit, which accused Google of secretly tracking the internet use of users who believed they were browsing privately, has drawn attention to the tech giant's handling of user data and its practices regarding privacy.

The terms of the settlement, filed on Monday in the Oakland, California federal court, are contingent upon approval by U.S. District Judge Yvonne Gonzalez Rogers. While users will not receive monetary damages as part of the settlement, they will retain the right to pursue individual legal action for damages.

The class action lawsuit, initiated in 2020, encompasses millions of Google users who utilized private browsing modes since June 1, 2016. Allegations against Google include claims that its analytics, cookies, and apps enabled the improper tracking of individuals using Google Chrome's "Incognito" mode and similar features on other browsers.

Under the terms of the settlement, Google has committed to updating disclosures regarding data collection in "private" browsing modes, a process it has already initiated. Additionally, Google will enable Incognito users to block third-party cookies for a period of five years. The plaintiffs' lawyers assert that these measures will result in Google collecting less data from users' private browsing sessions and subsequently making less revenue from data collection activities.

While Google has expressed support for the final approval of the settlement, it maintains disagreement with the plaintiffs' "legal and factual characterizations," as stated in court papers. Despite this, the settlement marks a significant milestone in the ongoing discourse surrounding privacy and accountability within the tech industry.

David Boies, a lawyer representing the plaintiffs, lauded the settlement as "a historic step in requiring honesty and accountability from dominant technology companies." The resolution follows a preliminary settlement reached in December, preceding a scheduled trial set for Feb. 5, 2024. Specific terms of the settlement were not disclosed at the time.

The settlement's details were revealed in new court filings on Monday, shedding light on Google's agreement to delete billions of data records older than nine months. Additionally, Google will inform users about data collection in Incognito mode and disable third-party trackers by default when using the feature. This represents a significant shift in Google's approach to privacy, addressing concerns raised by users and regulatory bodies alike.

Despite Google's assertion that the lawsuit was meritless, the company has taken proactive steps to address privacy concerns and enhance transparency surrounding its data collection practices. Google spokesperson José Castañeda emphasized the company's commitment to user privacy, stating, "We never associate data with users when they use Incognito mode."

In addition to the settlement's monetary implications, users will retain the right to file individual claims against Google. Already, 50 plaintiffs have filed claims in California state court seeking monetary damages, underscoring the significance of the settlement and its potential impact on future litigation against tech companies.

Attorneys for the plaintiffs characterized the settlement as "ground-breaking" and "unprecedented" in its scope and scale, highlighting its potential to drive greater accountability and transparency in the tech industry. The details of the settlement were first reported by The Wall Street Journal, further emphasizing its significance within the broader context of privacy litigation and regulatory scrutiny.