A class action lawsuit against Google has been reinstated by the U.S. Court of Appeals for the 9th Circuit, involving claims from Chrome users who allege improper data collection practices. The case had previously been dismissed by a lower court but will now put further pressure on Google following a recent ruling stating the company is monopolizing.
Background of the Lawsuit
Initially filed in 2020, the lawsuit accuses Google of collecting personal data from Chrome users without obtaining explicit consent. Specifically, the issue relates to users who chose not to sync their browsers with Google accounts. The class action includes users dating back to July 27, 2016.
The appeals court noted that the initial court did not adequately investigate whether users had consented to Google’s data collection. Circuit Judge Milan Smith emphasized that Google’s privacy policy might not have clearly informed users about the specific data being collected. “A reasonable user would not necessarily understand that they were consenting to the data collection at issue,” Smith stated.
Allegations and Data Collection Practices
According to the lawsuit, Google allegedly gathered various types of personal data, such as browsing history, IP addresses, and browser identifiers, without explicit permission. Central to these allegations is the Chrome sync feature, which stores bookmarks, passwords, and other data to users’ Google accounts. Plaintiffs argue that Google led users to believe their data would not be collected unless they enabled this feature.
The legal challenge comes after a previous settlement where Google agreed to delete billions of data records. That settlement addressed complaints that Google tracked users who thought they were browsing privately, including when using Chrome’s “Incognito” mode.
Google’s Response
Google spokesperson José Castañeda told The Verge that the company’s disagreement with the appeals court’s decision, maintaining that the facts favor Google. Castañeda also mentioned an upcoming update allowing users to access saved information without enabling Chrome sync, a change unrelated to the current litigation.
The case has now been remanded to U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California, who had dismissed it in December 2022. The appeals court’s ruling necessitates a re-evaluation of whether Chrome users consented to Google’s data collection practices.
Google’s Ongoing Issues with US Regulators
The latest lawsuit comes following a recent ruling that could potentially be historic. US courts earlier this month found Google guilty of monopolistic practices. Among the potential outcomes from the ruling could be to break up the company.
The decision for the wider DoJ investigation was made last September and could have a huge impact on Google and its parent Alphabet. Last year, the DoJ accused the company of destroying evidence by deleting chats between employees. In November 2022, Google agreed to pay hundreds of millions of dollars to 40 states in the biggest anti-trust settlement in U.S. law.
Google argued that the failure of rivals such as Microsoft Bing was not down to its own practices but rather the failures of Microsoft. The trial also looked into Google’s search ad practices. As we reported in September, the DOJ alleges that Google’s market dominance allows it to hike ad prices without significant consequences. This claim is substantiated by Jerry Dischler, a Google ads executive, who testified about the company’s ad pricing strategies.
Alphabet CEO Sundar Pichai and Microsoft CEO Satya Nadella have both given testimonies during the landmark trial. In his testimonies to the court, Microsoft CEO Satya Nadella suggested Google stifles Bing. Nadella revealed that Microsoft has poured a staggering $100 billion into Bing, its proprietary search engine. Nadella candidly admitted Microsoft’s unsuccessful attempts to dethrone Google from this position, even after offering Apple more favorable terms.
Google reportedly pays Apple up to $20 billion per year to keep its Search engine on iPhone and other devices. However, Pichai claims this drives competition not blocks it. He reasoned that the cost-effectiveness of contending with a potential Apple-powered rival search engine or another competitor weighed in favor of retaining Google’s default status on iPhones.
One option under consideration is the separation of Google’s Android operating system and the Chrome browser. Android, which powers around 2.5 billion devices worldwide, is frequently mentioned in these conversations. The widely-used Chrome – the dominant web browser on the market – is also being examined.
Last Updated on November 7, 2024 3:13 pm CET
