Google isn’t new to lawsuits. The search giant is dealing with a plethora of such cases, ranging from antitrust cases to lawsuits over data collection and user privacy. Though it has now moved to close one such case by agreeing to a $135 million settlement tied to allegations about background data usage on Android smartphones. The proposed settlement was submitted on January 27 in the US District Court for the Northern District of California under the case title “Taylor et al. v. Google LLC” (Case No. 5:20-cv-07956-VKD).
The lawsuit was brought as a class action on behalf of Android users in the United States and centered on claims that Googleâs Android operating system consumed cellular data without proper user consent. According to the plaintiffs, Android devices continued to transmit information to Google servers even when phones appeared idle, apps were closed, and certain privacy and data-sharing settings were disabled. They argued this resulted in users unknowingly losing portions of their paid mobile data plans.
The case becomes significant considering the way the plaintiffs structured their legal argument. Rather than focusing solely on privacy violations, the plaintiffs argued that mobile data purchased from wireless carriers should be treated as a form of personal property. They claimed Google effectively used this property without authorization, benefiting from the data transfers to support system operations, diagnostics, service improvements, and advertising-related infrastructure. This approach pushed courts to consider whether traditional property law concepts could apply to modern digital resources like mobile data.
Meanwhile, the Sundar Pichai-led company has denied the allegations throughout the case, maintaining that Androidâs background data transfers are essential for security updates, system stability, synchronization, and overall device performance. The company has also argued that users consent to these practices through Androidâs terms of service and privacy policies.
However, despite this, the tech titan chose to settle the case, avoiding a jury trial that had been scheduled for 2026 and the uncertainty that often accompanies litigation involving consumer data and privacy issues. Under the proposed settlement, Android users in the United States who used the operating system from November 12, 2017, onward may qualify for compensation, with individual payouts capped at up to $100, depending on the number of valid claims submitted. From the $135 million settlement fund, plaintiffsâ lawyers are seeking court approval for about $40 million in legal fees. In addition to monetary compensation, Google has agreed to improve transparency around Androidâs data practices by providing clearer disclosures during device setup, offering better explanations of background data usage, and strengthening user controls to manage and limit certain data transfers.
The Android data settlement comes at a time when Google faces mounting pressure from regulators and courts across multiple jurisdictions. In the United States, the company is battling major antitrust cases related to online search and digital advertising. Even in Europe, regulators have issued multi-billion-dollar fines over competition and data protection issues.
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