Google Pays Hefty A$60 Million Fine in Australia Over Deceptive Location Data Practices

In a significant victory for consumer privacy and regulatory oversight, Google has agreed to pay a substantial A$60 million (approximately US$36 million) fine to Australia's competition watchdog. This hefty penalty stems from a landmark ruling by the Australian Federal Court, which found the tech giant guilty of misleading Android users about the collection of their personal location data between January 2017 and December 2018.

The core of the deception lay in the intricate way Google presented its location tracking settings.

Many Android users were under the impression that by simply disabling the “Location History” setting, they were fully preventing Google from collecting information about their whereabouts. However, the Australian Competition and Consumer Commission (ACCC) successfully argued that another setting, “Web & App Activity,” which was typically enabled by default, continued to collect and store precise location data, even if “Location History” was turned off.

This opaque system meant that users had a false sense of control over their privacy.

Unless both “Location History” and “Web & App Activity” were explicitly disabled, Google continued to gather valuable location information. The ACCC took a firm stance, asserting that Google's conduct was “misleading” and violated Australian consumer law, eroding trust and undermining users’ ability to make informed decisions about their data.

The Federal Court’s decision, initially handed down in April 2022, affirmed the ACCC’s claims.

While the original proposed penalty was a staggering A$200 million, the final agreed-upon fine of A$60 million still represents a significant sum, sending a clear message to tech companies worldwide about the paramount importance of transparency in data collection practices. Google has since made adjustments to its user interfaces and disclosures to provide clearer explanations of its settings and how they interact.

This pivotal case serves as a critical reminder of the ongoing global scrutiny on how tech giants handle user data.

Regulators are increasingly vigilant, demanding greater accountability and crystal-clear communication from companies that collect vast amounts of personal information. For consumers, it underscores the persistent need to delve into privacy settings and thoroughly understand exactly what data they are sharing, even with services they trust daily.