Google Settles Class Action Lawsuit with $100 Million Payment to Advertisers

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Google has agreed to pay $100 million in cash to settle a class action lawsuit filed by advertisers, which alleged the company overcharged them through its AdWords program (now Google Ads) by failing to provide promised discounts and charging for ads outside the geographic areas that advertisers targeted. The settlement was filed on Thursday in a federal court in San Jose, California, and is pending judicial approval.

The lawsuit, which dates back to 2011, accuses Google of breaching contract terms by manipulating its Smart Pricing algorithm to artificially reduce discounts and failing to limit ad distribution as specified by the advertisers. The plaintiffs also claimed that Google’s actions violated California’s unfair competition law.

The settlement covers all advertisers who used Google’s AdWords program between January 1, 2004, and December 13, 2012. Google has denied any wrongdoing, stating that the case was related to changes made to ad product features over a decade ago.

Plaintiff attorneys may seek up to 33% of the settlement fund, as well as $4.2 million in expenses. The case required extensive evidence, including over 910,000 pages of documents and several terabytes of click data from Google.

PayPal Shares Drop Amid EU Lawmaker’s Comments on Potential New Fees

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PayPal’s shares experienced a 5% drop on Friday following concerns raised by European Union lawmaker Bernd Lange about the possibility of new fees on U.S. tech companies like PayPal and Google due to escalating trade tensions between the U.S. and Europe. Lange, who leads the European Parliament’s international trade committee, suggested that digital service providers, including PayPal, could face additional charges as part of the EU’s response to the U.S.’s tariff threats.

The announcement follows comments from U.S. President Donald Trump, who indicated the possibility of higher tariffs on both the European Union and Canada if they collaborate in a manner that harms the U.S. economy. While the idea of imposing tariffs on digital services is complicated, due to the reliance on digital transactions rather than physical goods, the potential for such measures has contributed to investor anxiety.

A spokesperson from the German government echoed Lange’s comments, stating that “nothing is off the table” in terms of possible retaliatory actions. Despite these tensions, PayPal declined to provide further comment.

Analysts expressed doubt over the actual likelihood of these measures being enacted, with Argus Research analyst Stephen Biggar describing the situation as “sell first and ask questions later.” The potential implementation of tariffs on finance and payments remains uncertain, but the fear of such measures has triggered volatility in the stock market.

Taiwan Investigates SMIC for Alleged Illegal Recruitment of Tech Workers

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Taiwanese authorities are investigating whether China’s top semiconductor manufacturer, SMIC (Semiconductor Manufacturing International Corporation), has been involved in illegally luring Taiwanese tech workers. According to Taiwan’s Justice Ministry’s investigation bureau, SMIC is suspected of using a shell company posing as a Samoan firm to recruit engineers on the island, specifically targeting the semiconductor talent in Hsinchu County, home to Taiwan’s semiconductor industry hub and TSMC (Taiwan Semiconductor Manufacturing Company).

The investigation is part of Taiwan’s broader effort to combat illegal activities aimed at stealing know-how and attracting talent from its advanced technology sector. Taiwan has long been a global leader in semiconductor manufacturing, making its high-tech workforce a prime target for Chinese firms, especially amid growing geopolitical tensions and U.S. export restrictions on China’s semiconductor industry.

Taiwan’s investigation has been extensive, with 180 agents conducting raids at 11 companies suspected of engaging in talent poaching. The authorities have already questioned 90 people and seized evidence from 34 premises. Since 2020, more than 100 such cases have been investigated.

SMIC, which has been increasing its efforts to expand its production capacity and counter U.S. sanctions, has not yet responded to requests for comment regarding the allegations.