A San Jose jury ruled that Google (NASDAQ:GOOG) misused idle Android phone data without user consent, saddling users with mandatory and unavoidable cellular-data burdens while the devices were idlecosts that netted Google ad-revenue benefits.
The case, filed in 2019 on behalf of roughly 14 million Californians, argued that background data collection for targeted ads exceeded any reasonable user understanding or permission.
Google’s defensethat users agreed to data transfers via its terms of service and suffered no harmfell flat with jurors, who awarded plaintiffs $314,646,109.
Google spokesperson Jose Castaneda called the decision a setback for users and said the company will appeal, arguing the ruling misunderstands critical security and performance services.
Plaintiffs’ attorney Glen Summers said the verdict forcefully vindicates the lawsuit’s merit and underscores Google’s misconduct.
The California verdict marks the first major blow but isn’t the last legal skirmish: a separate federal class action on behalf of Android users outside California is slated for trial in April 2026. That case could amplify damages if plaintiffs replicate their California success nationwide.
Why It Matters: A seven-figure jury award highlights the legal risks tech giants face over opaque data practices and could inspire similar suits in other states.
Investors will track Google’s appeal progress and the April 2026 federal trial for clues on potential additional liabilities and any resulting changes to Android’s data-collection policies.
This article first appeared on GuruFocus.
