Google has agreed to destroy billions of records containing personal information following a lawsuit settlement that claims the company secretly tracked over 136 million U.S. users' private Chrome web browsing. The terms of the settlement were filed with the U.S. District Court in Oakland, California, and await approval by Judge Yvonne Gonzalez Rogers. The lawsuit, which began in June 2020, alleged that Google's analytics, cookies, and apps allowed the company to track and gather information while users were in Incognito mode and other private browsing settings.

The settlement, valued at more than $5 billion and potentially as high as $7.8 billion, requires Google to delete old personal technical data that was never associated with an individual and was never used for personalization. Despite this, Google is not required to pay damages to affected users, although individuals can still sue the company themselves. In addition to destroying the data, Google will update disclosures to notify users when data is being collected and allow Incognito users to block third-party cookies for five years.

In response to the settlement, Google spokesman Jose Castaneda stated that the company was pleased to settle the lawsuit, which they believed was meritless. The plaintiffs' lawyers, led by David Boies, called the settlement a historic step in requiring honesty and accountability from dominant technology companies. They also highlighted that the settlement will lead to Google collecting less data from users' private browsing sessions, resulting in the company making less money from the data.

The settlement comes after U.S. District Judge Yvonne Gonzalez Rogers rejected Google's request to dismiss the case last August, setting up a potential trial. The settlement terms were negotiated over four months and were disclosed in a court filing. The settlement requires Google to make more prominent privacy disclosures about Chrome's Incognito option and impose other controls to limit the collection of personal information. While consumers represented in the class-action lawsuit will not receive any damages, they can still pursue damages against Google through individual civil complaints in state courts across the U.S.

Despite the settlement, Google is still facing legal threats on the regulatory front that could have a significant impact on its business. The Justice Department has outlined allegations that the company is abusing the dominance of its search engine, and a federal judge is scheduled to hear closing arguments in the case soon. Additionally, changes to Google's app store for smartphones powered by its Android software could impact the company's revenue from commissions. A hearing examining possible revisions to Google's Play Store is scheduled for late May.