Google pays up as antitrust scrutiny heightens
Google’s recent settlement of $1.38bn (£1.05bn) with the state of Texas marks a significant moment in the tech titan’s ongoing legal battles over both privacy violations and anti-competitive practices.
The settlement, which resolves two major lawsuits filed in 2022, accused Google of secretly collecting biometric data such as facial recognition and local tracking, without user consent.
It also serves as a stark reminder of the growing legal scrutiny facing American Big Tech firms in 2025.
A $1.38bn settlement
The lawsuits, initiated by Texas attorney general Ken Paxton, accused Google of collecting users’ biometric data through its products like ‘photos’ and ‘assistant’, often without clear consent.
Paxton’s office highlighted that, in some cases, Google continued to track users’ locations even after they had actively disabled location-tracking features.
“For years, Google secretly tracked people’s movements, private searches, and even their voice prints and facial geometry through their products and services. I fought back and won”, Paxton said.
This settlement is notable not only for its size but also because it is the largest amount Google has agreed to pay to resolve data privacy claims.
Despite agreeing to it, Google has been firm in denying any faux-pas.
“This settles a raft of old claims, many of which have already been resolved elsewhere, concerning product policies we have long since changed”, said a Google spokesperson.
The tech giant also emphasised that no changes would be made to its products as part of the agreement.
Google’s growing legal landscape
While this Texas settlement represents a significant movement for Google, it is far from the only legal challenge the company is facing.
As the tech giant continues to weather scrutiny on multiple fronts, its troubles are not just limited to privacy-related issues but extend to antitrust concerns that are increasingly becoming a global issue.
In the US, Google has long been under investigation for anti-competitive practices in the digital advertising space.
The Department of Justice (DOJ) filed a major lawsuit against the company in April, accusing Google of monopolising digital advertising market and stifling competition.
The DOJ’s claims were based on Google’s control over platforms like Google ads and its Ad Exchange tools, which facilitate the buying and selling of adverts.
The DOJ has recommended that Google divest parts of its ad business, including its AdX and display and video 360 platforms, which Google strongly resisted.
Google’s antitrust case in the UK
Meanwhile, Google is also facing significant antitrust challenges in the UK.
In July 2024, the UK’s competition and markets authority (CMA) opened an investigation into the firm’s practices surrounding its Google ads platform.
The watchdog is concerned that Google’s dominance in the digital advertising market stifles competition by offering preferential treatment to its own ad products, leaving rivals with a disadvantage.
This raised concerns around the fairness of ad auctions and the lack of transparency in Google’s ad ecosystem.
The CMA’s investigation focuses on whether Google’s dominance in both search and advertising violated the UK’s competition laws, which would mirror similar investigations and fines faced by Google in the EU.
The UK’s scrutiny of Google’s business practice is a reminder that regulators are increasingly willing to challenge Big Tech’s dominance, particularly when it comes to advertising and data control.
Google struggles with search monopoly
Alongside these ongoing investigations in both the US and UK, Google is also grappling with its near-monopoly on search, which may force it to sell Chrome.
In August 2024, a US court ruled that the firm’s exclusive deal with Apple, for which the Alphabet company paid the iPhone maker over $20bn annually to make Google its browser, was anti-competitive.
The court found that this agreement effectively blocked out other search engines from competing on an equal footing, raising questions about whether Google’s practices amount to anti-competitive behaviour that harms consumers.
Google has since pushed back, saying that consumers have the option of switching their default search engine settings manually.
Yet, critics have said that the firm’s market share in search, which is well above 90 per cent globally, makes it hard for alternative parties to compete.
Global pressures
Google’s troubles have not been limited to the US and UK, either.
In the European union, the company has faced a series of hefty fines and investigations over the past few years.
The EU’s antitrust watchdog, the European Commission, has imposed billions of dollars in penalties on Google, accusing it of anti-competitive behaviour in areas like its Android operating system, Google shopping, and the Google Adsense network.
In total, Google has been fined more than €8bn by the EU for antitrust violations, with investigations into its practices ongoing.
The combination of fines, investigations, and ongoing legal disputes suggests that Google’s ability to dominate markets with little competition may be coming to an end.
Regulatory bodies around the world are looking to curb Big Tech’s influence, and Google is at the centre of this effort, with multiple lawsuits threatening to reshape how the company operates.
What’s next for Google?
Google’s response to these growing legal challenges will be crucial to its future.
The company has shown a willingness to settle, as evidenced by the Texas privacy lawsuits, and its past agreements with European regulators.
However, with billions of dollars at stake, especially in the ad-tech space, it’s clear that Google may need to make substantial changes to its business model in order to satisfy regulators.
In particular, the company faces the challenges of balancing its desire for continued growth with increasing regulatory scrutiny.
Whether its giving up its market share in the ad sector, reshaping its business due to privacy issues, or adjusting its search engine practices, Google will need to take decisive action.