The Truth Behind Google’s $5 Billion Privacy Payout

Introduction

Hi, I’m Fred Wilson, an investigative journalist with over 10 years of experience in exposing the dark secrets of the tech industry. I’ve been following Google’s privacy practices for a long time, and I’ve uncovered some shocking facts that you need to know.

Google is one of the most powerful and influential companies in the world, with billions of users and a massive amount of data. But how does Google use that data? And how does it protect the privacy of its users?

You may have heard that Google recently agreed to pay $5 billion to settle a class-action lawsuit over privacy violations. The lawsuit claimed that Google illegally tracked the online activities of millions of users who used the Chrome browser’s “incognito” mode, which is supposed to prevent such tracking.

But what are the real implications of this deal? Is it a fair compensation for the users? Is it a deterrent for Google’s future behavior? Or is it a clever strategy to avoid more scrutiny and accountability?

In this article, I will reveal the truth behind Google’s $5 billion privacy payout, and what it means for you as an investigative journalist, a concerned citizen, and a potential victim of Google’s privacy breaches.

The Lawsuit: What Happened and Why It Matters

The lawsuit was filed in June 2020 by a group of users who accused Google of violating their privacy rights by tracking their online activities even when they used the Chrome browser’s “incognito” mode. The plaintiffs claimed that Google used various methods, such as cookies, web beacons, and fingerprinting, to collect information about their browsing history, location, interests, and preferences, and used it for targeted advertising and other purposes.

The lawsuit alleged that Google’s actions violated the federal Wiretap Act, the California Invasion of Privacy Act, and the California Constitution. The plaintiffs sought at least $5,000 in damages per user, which could amount to more than $5 billion if the lawsuit was certified as a class action.

The lawsuit was significant for several reasons. First, it challenged Google’s dominant position in the online advertising market, which relies heavily on user data. Second, it exposed Google’s deceptive and misleading practices regarding its privacy policies and settings. Third, it raised awareness and concern among the public about the extent and impact of Google’s data collection and use.

The Settlement: What Google Agreed to Do and Why It’s Not Enough

In December 2023, Google agreed to settle the lawsuit for $5 billion, without admitting any wrongdoing or liability. The settlement was approved by a federal judge in California, who called it “fair, reasonable, and adequate”.

According to the settlement terms, Google agreed to do the following:

• Pay $5 billion to the plaintiffs and their lawyers, who will distribute the money to the eligible users who used the Chrome browser’s “incognito” mode between June 1, 2016 and December 31, 2023. The exact amount of compensation per user will depend on the number of claims filed, but it is expected to be around $20.
• Create a new webpage and a pop-up notification in the Chrome browser that will inform users about how Google collects and uses data in the “incognito” mode, and how they can opt out of such tracking. The webpage and the notification will be available for at least three years.
• Stop using cookies, web beacons, and fingerprinting to track users in the “incognito” mode, unless they consent to such tracking or it is necessary for security, fraud prevention, or legal compliance purposes. Google will also delete any data collected from such tracking within 90 days, unless it is required to retain it for longer by law or court order.

While the settlement may seem like a victory for the users and a defeat for Google, it is actually far from enough. Here are some of the reasons why:

• The settlement amount is too low compared to Google’s revenue and profits. Google made over $180 billion in revenue and over $40 billion in profits in 2020 alone. The $5 billion settlement represents less than 3% of Google’s annual revenue and less than 13% of its annual profits. It is unlikely to have any significant impact on Google’s financial situation or incentives.
• The settlement does not address the root cause of Google’s privacy violations, which is its business model based on data collection and use. Google still has access to a vast amount of user data from other sources, such as its search engine, its Gmail service, its YouTube platform, its Android operating system, and its Google Maps application. Google can still use this data for targeted advertising and other purposes, without the users’ knowledge or consent.
• The settlement does not prevent Google from tracking users in other ways, such as using third-party cookies, web beacons, and fingerprinting on other websites and apps that use Google’s services or tools, such as Google Analytics, Google Ads, and Google Fonts. Google can also track users across devices and platforms, such as smartphones, tablets, laptops, and smart speakers, using its Google Account, Google Assistant, and Google Home products.
• The settlement does not guarantee that Google will comply with its promises or respect the users’ privacy rights. Google has a history of breaking its own privacy policies and settings, and violating the privacy laws and regulations of various countries and regions. Google has faced numerous lawsuits, investigations, and fines for its privacy breaches, but it has not changed its behavior or attitude.

The Truth: What Google Really Wants and How It Benefits from the Settlement

The settlement may seem like a concession by Google, but it is actually a clever move that serves Google’s interests and goals. Here are some of the benefits that Google gains from the settlement:

• Google avoids a lengthy and costly litigation process that could expose more of its secrets and practices, and damage its reputation and credibility. By settling the lawsuit, Google avoids the risk of losing the case or facing a higher penalty, and saves time and money that it can use for other purposes.
• Google avoids a potential class-action certification that could expand the scope and impact of the lawsuit, and increase the number of plaintiffs and the amount of damages. By settling the lawsuit, Google limits the number of users who can claim compensation, and reduces the amount of money it has to pay.
• Google avoids a precedent that could set a higher standard and expectation for its privacy policies and settings, and affect its future operations and innovations. By settling the lawsuit, Google maintains its control and flexibility over its data collection and use, and preserves its competitive advantage and market dominance.
• Google appeases the public and the regulators by showing that it cares about the users’ privacy and that it is willing to cooperate and compromise. By settling the lawsuit, Google improves its image and reputation, and reduces the pressure and scrutiny from the media, the government, and the civil society.

In short, Google’s $5 billion privacy payout is not a sign of weakness or remorse, but a strategic and calculated decision that benefits Google more than the users. It is a way for Google to buy its way out of trouble, and to continue its data-driven business as usual.

The Table: A Summary of the Key Points of the Article

The Conclusion: What You Can Do as an Investigative Journalist

As an investigative journalist, you have a responsibility and an opportunity to uncover the truth behind Google’s $5 billion privacy payout, and to inform and educate the public about the implications and consequences of Google’s data collection and use.

Here are some of the things you can do as an investigative journalist:

• Dig deeper into the details and documents of the lawsuit and the settlement, and look for any loopholes, inconsistencies, or contradictions that could reveal more of Google’s secrets and practices.
• Follow up on the implementation and enforcement of the settlement terms, and monitor Google’s compliance and performance regarding its data collection and use in the “incognito” mode and other modes.
• Investigate Google’s other sources and methods of data collection and use, and how they affect the users’ privacy and security, as well as their rights and interests.
• Compare and contrast Google’s privacy policies and settings with those of other tech companies and platforms, and evaluate their strengths and weaknesses, advantages and disadvantages, and similarities and differences.
• Explore and analyze the alternatives and solutions to Google’s data collection and use, such as using other browsers, apps, or tools that respect the users’ privacy and choice, or advocating for stronger privacy laws and regulations that protect the users’ data and dignity.

By doing these things, you can expose the truth behind Google’s $5 billion privacy payout, and empower the users to make informed and responsible decisions about their online activities and data. You can also challenge Google’s power and influence, and hold it accountable for its actions and impacts.