Tag Archives: Company Legal & Law Matters

Google will pay $135 million to settle illegal data collection lawsuit

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Google has agreed to a preliminary $135 million settlement in a class action lawsuit brought by Android users who accused it of harvesting their data without consent. The suit alleged that since November 12, 2017, Google has been illegally collecting cellular data from phones purchased through carriers, even when apps were closed or location features were disabled.

As reported by Reuters, the affected users believed Google using their data for marketing and product development meant it was guilty of "conversion." In US law, conversion occurs when one party takes the property of another with "the intent to deprive them of it" or "exert property rights over it."

Subject to approval from a judge, a settlement of $135 million was filed in a San Jose federal court earlier this week. The payout would be one of, if not the largest ever in a case of this nature, according to Glen Summers, a lawyer for the plaintiffs.

Each user involved in the lawsuit would be entitled to up to $100 from Google, which denies any wrongdoing and has agreed to seek consent during the setup process of a new phone from now on. A toggle will be added to enable users to easily disable data transfer, while the Alphabet-owned company will also adjust its terms of service accordingly. A trial is scheduled for August 5.

This is the second settlement this week for Google. On January 26, the company also agreed to a $68 million settlement regarding claims that Google Assistant had been spying on users after being triggered by what it had misheard as wake words. Again, Google denied any wrongdoing in the class action suit.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/google-will-pay-135-million-to-settle-illegal-data-collection-lawsuit-133012112.html?src=rss

TikTok settles to avoid major social media addiction lawsuit

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TikTok has reached a settlement in a closely-watched lawsuit over social media addiction, narrowly avoiding a trial that's scheduled to begin jury selection Tuesday. Terms of the deal, which was reported by The New York Times, weren't disclosed. 

TikTok's settlement comes about one week after Snap reached a settlement in the same case. The trial is expected to move forward in Los Angeles with Meta and YouTube as the only defendants. Mark Lanier, a lawyer for the plaintiff, said in a statement to NYT that they were "pleased" with the settlement and that it was "a good resolution." TikTok didn't immediately respond to a request for comment. 

The trial stems from a 2023 lawsuit brought by a California woman known in court documents as "K.G.M." She sued Meta, Snap, TikTok and YouTube and alleged that their platforms were addictive and had harmed her as a child. The judge in the case previously ordered the companies' executives, including Mark Zuckerberg and Adam Mosseri, to testify. YouTube's top exec, Neal Mohan, is also likely to testify, according to The New York Times. 

The lawsuit is the first among several high-profile cases against social media companies to go to trial this year. Meta is expected to head to court in New Mexico in early February in a case brought by the state's attorney general, who has alleged that Facebook and Instagram have facilitated harm to children. TikTok and Snap are collectively facing more than a dozen other trials in California courts this year.

This article originally appeared on Engadget at https://www.engadget.com/social-media/tiktok-settles-to-avoid-major-social-media-addiction-lawsuit-183943927.html?src=rss

The EU tells Google to give external AI assistants the same access to Android as Gemini has

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The European Commission has started proceedings to ensure Google complies with the Digital Markets Act (DMA) in certain ways. Specifically, the European Union’s executive arm has told Google to grant third-party AI services the same level of access to Android that Gemini has. "The aim is to ensure that third-party providers have an equal opportunity to innovate and compete in the rapidly evolving AI landscape on smart mobile devices," the Commission said in a statement. 

The company will also have to hand over "anonymized ranking, query, click and view data held by Google Search" to rival search engines. The Commission says this will help competing companies to optimize their services and offer more viable alternatives to Google Search. 

"Today’s proceedings under the Digital Markets Act will provide guidance to Google to ensure that third-party online search engines and AI providers enjoy the same access to search data and Android operating system as Google's own services, like Google Search or Gemini," said Henna Virkkunen, the Commission’s executive vice-president for tech sovereignty, security and democracy. "Our goal is to keep the AI market open, unlock competition on the merits and promote innovation, to the benefit of consumers and businesses."

The Commission plans to wrap up these proceedings in the next six months, effectively handing Google a deadline to make all of this happen. If the company doesn't do so to the Commission's satisfaction, it may face a formal investigation and penalties down the line. The Commission can impose fines of up to 10 percent of a company's global annual revenue for a DMA violation.

Google was already in hot water with the EU for allegedly favoring its own services — such as travel, finance and shopping — over those from rivals and stopping Google Play app developers from easily directing consumers to alternative, cheaper ways to pay for digital goods and services. The bloc charged Google with DMA violations related to those issues last March. 

In November, the EU opened an investigation into Google's alleged demotion of commercial content on news websites in search results. The following month, it commenced a probe into Google's AI practices, including whether the company used online publishers' material for AI Overviews and AI Mode without "appropriate compensation" or offering the ability to opt out.

This article originally appeared on Engadget at https://www.engadget.com/ai/the-eu-tells-google-to-give-external-ai-assistants-the-same-access-to-android-as-gemini-has-154157081.html?src=rss

Google agrees to $68 million settlement in voice assistant privacy lawsuit

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Google has agreed to a $68 million settlement regarding claims that its voice assistant inappropriately spied on smartphone users. Plaintiffs claimed that the company’s Google Assistant platform began listening to them after it misheard conversations that sounded like its wake words. The suit argued that private information that Google Assistant shouldn't have heard was then used to deliver those individuals targeted ads. 

Reuters reported that Google denied wrongdoing in the suit, but according to court papers, the company agreed to a settlement in order to avoid the risk and costs of litigating the issue. The preliminary class action settlement was filed on Friday and now awaits approval from U.S. District Judge Beth Labson Freeman.

Google has been transitioning away from the Google Assistant platform in the past year, replacing it with its Gemini tool. Not that AI chatbots should be trusted as paragons of privacy either.

Apple faced a very similar allegations around its Siri voice assistant in 2019; that class-action suit ended in a $95 million settlement in January 2025. Not sure if a reward of $20 per device feels sufficient when these companies are accidentally overhearing deeply personal conversations and details, but that's how the justice system shakes out some times.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/google-agrees-to-68-million-settlement-in-voice-assistant-privacy-lawsuit-222405727.html?src=rss

Elon Musk is looking for a $134 billion payout from OpenAI and Microsoft

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We now have some idea of what's at stake in the longstanding feud between Elon Musk and OpenAI. As first reported by Bloomberg, the latest filing, as part of a lawsuit that accuses the AI giant of abandoning its non-profit status, claims that Musk is owed anywhere between $79 billion and $134 billion in damages from the "wrongful gains" of OpenAI and Microsoft.

Musk claimed in the filing that he's entitled to a portion of OpenAI's recent valuation at $500 billion, after contributing $38 million in "seed funding" during the AI company's startup years. Along with providing "roughly 60 percent of the nonprofit's seed funding," Musk offered recruiting of key employees, introductions with business contacts and startup advice, according to the filing. The monetary estimate comes from C. Paul Wazzan, a financial economist who's serving as Musk's expert in the case. According to Wazzan's calculations, OpenAI earned between $65.5 billion and $109.43 billion in wrongful gains, while Microsoft saw between $13.3 billion and $25.06 billion.

The lawsuit between Elon Musk and OpenAI dates back to March 2024, when the xAI CEO first filed a legal action claiming that OpenAI violated its non-profit status. Musk later added Microsoft as another defendant and even tried to get an injunction when OpenAI announced efforts to reorganize its corporate structure. Besides this suit, Musk has named OpenAI in another legal battle, accusing the company, along with Apple, of monopolistic practices that prevent xAI from getting a fair shot in the App Store.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/elon-musk-is-looking-for-a-134-billion-payout-from-openai-and-microsoft-171824945.html?src=rss

Google is appealing the ruling from its search antitrust case to avoid sharing data with rivals

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Google has filed its appeal to the Department of Justice’s antitrust case that ended with a federal judge ruling that the company was maintaining a monopoly with its search business. While the company goes through the appeals process, it’s also asking that implementation of the remedies from the case, which include a requirement that Google share search data with its competitors, also be paused.

“As we have long said, the Court’s August 2024 ruling ignored the reality that people use Google because they want to, not because they’re forced to,” Google said in a statement. “The decision failed to account for the rapid pace of innovation and intense competition we face from established players and well-funded start-ups. And it discounted compelling testimony from browser makers like Apple and Mozilla who said they choose to feature Google because it provides the highest quality search experience for their consumers.”

The company says that the requirement that it “provide syndication services to rivals” and share search data is a privacy risk and could “discourage competitors from building their own products.” Both remedies where compromises based on what the Justice Department originally proposed, which included forcing Google to sell its Chrome web browser.

After a 10-week trial held in 2023, Google was found to have a search monopoly in 2024 because of the placement it maintained as the default search engine on multiple platforms, and the control it exerted over the ads that appear in search results. Both arguments were key points in the DOJ’s original 2020 lawsuit.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/google-is-appealing-the-ruling-from-its-search-antitrust-case-to-avoid-sharing-data-with-rivals-215107905.html?src=rss

XREAL files lawsuit against rival smart glass maker Viture

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San Francisco-founded Smart glasses maker Viture has been sued in a US court by rival XREAL over claims it infringed on its patents, XREAL announced in a press release. The complaint, lodged in a federal Texas court, accuses Viture of illegally incorporating XREAL's patented tech into its products including the Luma Pro, Luma Ultra and Beast models. 

"The lawsuit is not merely about enforcing a single patent," the company wrote. "It is about stopping a pattern of intellectual property infringement that undermines the integrity of innovation and endangers continued technological development in this industry." 

XREAL has already won a preliminary injunction against Viture in Germany. That resulted in a sales freeze in that country, which could spread to nine other European nations including France, Italy and Spain. That injunction affects Viture's Pro, Luma and Luma Pro smart glasses.

Both companies make augmented reality (AR) glasses with built-in displays that connect to smartphone or laptops, letting you play games, watch movies or do productivity tasks. Their products offer similar display resolutions and fields of view, both of which are key specifications for those products. 

In response, Viture issued its own statement: "Our product does not infringe upon the cited patent in any way," the company told Tom's Guide. "We encourage everyone to look closely at the patent itself and form their own judgment, it becomes clear very quickly how weak and questionable it is. XREAL has simultaneously circulated false claims suggesting that Viture is 'banned across nine European countries.' This is entirely untrue." The company added that it's taking legal action itself because of XREAL's comments. 

Viture is a relatively new player in the AR/VR world, but XREAL's lawsuit could be a prelude to similar actions, judging by the wording in its press release. XREAL holds over 800 patent and patent applications around the world around AR, VR and other tech, and claims that Viture has fewer than 70 and none in the US and Europe. At CES 2026, XREAL unveiled several new products, including the ROG X R1 AR glasses built in conjunction with ASUS. 

This article originally appeared on Engadget at https://www.engadget.com/wearables/xreal-files-lawsuit-against-rival-smart-glass-maker-viture-133018692.html?src=rss

Apple escalates its appeal of a $2 billion fine from a UK antitrust lawsuit

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Apple isn't ready to pay a several billion-dollar fine to UK App Store users and is filing an appeal over a major antitrust lawsuit. As first reported by The Guardian, Apple has requested to appeal to the UK's Court of Appeal, which would escalate the case beyond the Competition Appeal Tribunal (CAT). 

The latest appeal attempt follows an October decision from the CAT, where the court found that Apple engaged in anticompetitive practices by exploiting its dominant market position with the App Store to charge higher fees. The CAT's ruling established a £1.5 billion, or roughly $2 billion, fine, but Apple said it planned to appeal and that the court "takes a flawed view of the thriving and competitive app economy." The CAT didn't grant Apple the appeal, leading the iPhone maker to seek a higher court to overturn the ruling.

Apple hasn't made any official statements about its latest appeal application, but it's likely that it will argue against the CAT's proposed App Store developer fee rate of between 15 and 20 percent, which it reached through "informed guesswork," instead of the existing 30 percent. If the fine does ultimately stick, the $2 billion fine would be split amongst any App Store user in the UK who made purchases between 2015 and 2024, according to The Guardian.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/apple-escalates-its-appeal-of-a-2-billion-fine-from-a-uk-antitrust-lawsuit-201922558.html?src=rss

New York Times reporter files lawsuit against AI companies

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Investigative reporter John Carreyrou of the New York Times filed a lawsuit against xAI, Anthropic, Google, OpenAI, Meta and Perplexity on Monday for allegedly training their AI models on copyrighted books without permission. Carreyrou is perhaps best known for exposing the Theranos fraudulent blood test scandal.

According to Reuters, the lawsuit was filed alongside five other writers who all claim big tech companies have been violating their intellectual property rights in the name of building large language models.

This comes after a banner year for IP lawsuits against AI companies brought by rights holders. Just about every type of entity that deals in protected content has gone to court against AI companies this year, from movie studios like Disney and Warner Bros. to papers like the New York Times and the Chicago Tribune. Some of these cases have led to settlements in the form of partnerships, such as the licensing deal between Disney and OpenAI.

It's notable that this case is being brought by a small group of individuals instead of as a class action, something the authors involved say is no accident. "LLM companies should not be able to so easily extinguish thousands upon thousands of high-value claims at bargain-basement rates," the complaint reads. This is also the first case of its kind to list xAI as a defendant.

A spokesperson for Perplexity told Reuters that the company "doesn't index books." Anthropic, for its part, is no stranger to lawsuits from book publishers, having recently settled a class-action lawsuit brought by half a million authors for $1.5 billion. Apple was also sued earlier this year amid similar allegations. This latest complaint mentions the Anthropic settlement specifically, saying that class members in that case will only receive "a tiny fraction (just 2 percent) of the Copyright Act’s statutory ceiling of $150,000."

Engadget has reached out to xAI, Anthropic, Google, OpenAI, Meta and Perplexity for comment and will update with any response.

This article originally appeared on Engadget at https://www.engadget.com/ai/new-york-times-reporter-files-lawsuit-against-ai-companies-161624268.html?src=rss

Governor Hochul signs New York’s AI safety act

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New York governor Kathy Hochul signed legislation on Friday aimed at holding large AI developers accountable for the safety of their models. The RAISE Act establishes rules for greater transparency, requiring these companies to publish information about their safety protocols and report any incidents within 72 hours of their occurrence. It comes a few months after California adopted similar legislation. 

But, the penalties aren't going to be nearly as steep as they were initially presented when the bill passed back in June. While that version included fines of up to $10 million dollars for a company's first violation and up to $30 million for subsequent violations, according to Politico, Hochul's version sets the fines at up to $1 million for the first violation, and $3 million for any violations after that. In addition to the new reporting rules, a new oversight office dedicated to AI safety and transparency is being born out of the RAISE Act. This office will be part of the Department of Financial Services, and issue annual reports on its assessment of large AI developers. 

Hochul signed two other pieces of AI legislation earlier in December that focused on the use of the technology in the entertainment industry. At the same time, President Trump has been pushing to curb states' attempts at AI regulation, and signed an executive order this month calling for "a minimally burdensome national standard" instead.

This article originally appeared on Engadget at https://www.engadget.com/ai/governor-hochul-signs-new-yorks-ai-safety-act-220503930.html?src=rss