Google ordered to hand over $425 million for app privacy violation
In a significant development, France's data protection authority, the CNIL, has issued record-breaking fines against tech giants Google and fast-fashion platform Shein. The fines were issued due to the firms' failure to respect the law on internet cookies and secure users' free and informed consent before setting advertising cookies on their browsers.
Google, a global search engine giant, was hit with a fine of €325 million ($378 million). This penalty is the third issued by the CNIL over Google's use of cookies, following fines of €100 million in 2020 and €150 million in 2021. Google confirmed the jury verdict in a statement, with spokesperson Jose Castaneda stating that the decision misunderstood how Google's products work. The company has announced its intention to appeal the decision.
Shein, a popular fast-fashion platform, received a fine of €150 million ($175 million). Plaintiffs in the smartphone app privacy suit argued that Google intercepted, tracked, collected, and sold users' mobile app activity data regardless of privacy settings. Plaintiffs' attorneys in the suit claimed that Google's privacy promises and assurances were lies.
The case against Google was a class action suit filed in July 2020, while the trial took place in San Francisco. Meanwhile, a US federal jury ordered Google to pay approximately $425 million for gathering information from smartphone app use despite privacy settings.
The fines are significant for both Google and Shein, given their large user bases in France. Google, in its statement, emphasised that its privacy tools are designed to give users control over their data and honour their choices when personalization is turned off. The company has also stated that it would study the decision and has complied with earlier CNIL demands.
Shein, on the other hand, has not issued a formal statement regarding the fine. However, it is worth noting that this is the heaviest penalty ever imposed by France's CNIL watchdog. Both Google and Shein can still appeal the decision.
Google has been under pressure to balance targeting money-making ads with protecting user privacy. This pressure has intensified in recent years, with growing concerns about online privacy and data protection. The federal judge in Washington, DC, rejected the government's demand that Google sell its Chrome web browser as part of a major antitrust case the day before the jury verdict.
The details of the plaintiff party that sued Google in 2020 in a class action lawsuit for illegal collection of usage data from smartphone apps could not be found in the provided search results. Nonetheless, this case highlights the importance of respecting user privacy and obtaining informed consent in the digital age.
As we move forward, it is crucial for tech companies to prioritise user privacy and comply with data protection laws. This will not only help maintain user trust but also avoid costly fines and legal battles.
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