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In a landmark resolution, Google has agreed to pay $1.375 billion to settle a major Data Privacy Lawsuit brought by the state of Texas, Attorney General Ken Paxton announced Friday.

The agreement marks one of the largest state-level privacy settlements in U.S. history and underscores increasing scrutiny of Big Tech's handling of personal data.

“After years of aggressive litigation, Attorney General Paxton agreed to settle Texas's data-privacy claims against Google for an amount that far surpasses any other state's claims for similar violations,” said Paxton in a statement.

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Allegations of Privacy Violations

The original lawsuits, filed in 2022, accused Google of unlawfully collecting and tracking users’ geolocation data, incognito browsing activity, and biometric information, without proper consent. The lawsuits claimed these actions violated Texas privacy and consumer protection laws.

Although Google has not admitted to any wrongdoing, the settlement brings an end to the state’s two major lawsuits targeting the company’s data practices.

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Part of a Larger Legal Battle

This massive payout comes as Google faces mounting legal pressure from state and federal governments. In 2024, a similar case against Meta (also filed by Paxton) resulted in a $1.4 billion settlement over allegations the company illegally collected users’ biometric data.

Beyond privacy issues, Google is also entangled in multiple antitrust battles.

In August 2024, a judge ruled that the tech giant violated antitrust laws by maintaining a search engine monopoly. The Department of Justice is now pushing for remedies that could include breaking up Google’s business, such as requiring it to divest its Chrome web browser.

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Impact on the Tech Giant

The legal scrutiny is already affecting Google’s operations.

On Wednesday, an Apple executive revealed that search volume on Safari—where Google is the default engine—declined for the first time in over two decades. This is partially due to rising use of AI-powered tools.

This announcement contributed to Alphabet’s stock plunging over 8%.

Google said it continues to “enhance Search with new features” and noted that overall search queries have grown despite the decline on Apple’s platform.

In another antitrust case, a federal judge in Virginia ruled Google holds an illegal monopoly in advertising technology, a decision the company has vowed to appeal.

Looking Ahead

As tech companies face rising backlash over privacy and monopolistic behavior, Texas is positioning itself as a leader in holding Silicon Valley accountable.

“This case shows that no company—not even the largest tech giants—are above the law when it comes to respecting privacy,” a Paxton spokesperson added.