Google, Texas settle data privacy case; Court dismisses suit

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The Texas Supreme Court granted an agreed motion to dismiss, sending the state’s lawsuit against Google back to a lower court for judgment in accordance with the parties agreement. 

In 2022, Attorney General Ken Paxton sued Google claiming it unlawfully tracked and collected users’ private data, accusing the tech giant of violating the Deceptive Trade Practices Act (DTPA). 

In May, Paxton announced a $1.375 billion settlement in principle with Google, marking the highest recovery nationwide against the company for any attorney general’s enforcement of state privacy laws.  

“In Texas, Big Tech is not above the law,” Paxton said. “For years, Google secretly tracked people’s movements, private searches, and even their voiceprints and facial geometry through their products and services. This $1.375 billion settlement is a major win for Texans’ privacy and tells companies that they will pay for abusing our trust.”

On Feb. 24, Paxton filed a petition for review with the high court after an appellate court reversed an order denying Google’s special appearance – rendering judgment dismissing the state’s claims for lack of personal jurisdiction. 

Paxton questioned whether justices erred by holding that Google is not subject to personal jurisdiction in Texas, despite deceptively collecting data from Texans, because the company claims the alleged violation of the DTPA occurred in California.

“Under the opinion … Google can deceptively collect troves of personal data from millions of Texans Google knows to be located in Texas, and potentially make billions of dollars in profits from that deception, as long as some of Google’s deceptive behavior occurs in California,” the petition states. “And the Texas Attorney General cannot enforce Texas law in Texas to prevent Google from doing so. That is not the law in Texas (or anywhere).”

Court records show that the parties filed a joint motion for abatement in April, stating that they “are engaged in productive settlement negotiations and require additional time to effectuate that resolution.” 

On Oct. 24 the Supreme Court lifted the abatement and granted the parties agreed motion to dismiss. 

Paxton has previously reached $700 million and $8 million settlements with Google for anticompetitive and deceptive trade practices. 

Last July, he secured a $1.4 billion settlement for the state with Meta for unlawfully collecting and using facial recognition data – the largest settlement ever obtained from an action brought by a single state.  

Supreme Court case No. 25-0172