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Google Ordered to Pay $314 Million in California Cellular Data Class Action Verdict

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A jury in San Jose, California, has ruled that Google misused Android smartphone users’ cellular data without their permission, awarding over $314.6 million in damages to an estimated 14 million affected Californians. The verdict, delivered on Tuesday, found that Google collected and transmitted data from idle Android devices for its own benefit, imposing “mandatory and unavoidable burdens” on users.

The class action lawsuit, filed in 2019, argued that Google’s unauthorized data use served corporate purposes like targeted advertising while consuming users’ cellular data at their expense. Google denied wrongdoing, maintaining that users consented to data use via its terms of service and privacy policies, and claimed no harm was caused.

Google spokesperson Jose Castaneda stated the company plans to appeal, arguing the verdict “misunderstands services that are critical to the security, performance, and reliability of Android devices.” Plaintiffs’ attorney Glen Summers praised the decision, calling it a strong vindication of the case’s merits and highlighting the seriousness of Google’s misconduct.

Separately, a similar federal lawsuit covering Android users outside California is set for trial in April 2026 in San Jose.

EU Digital Rules Hurting Innovation and European Users

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Google is warning that the European Union’s Digital Markets Act (DMA)—a sweeping antitrust law targeting Big Tech—is stifling innovation and leading to worse experiences for European consumers and businesses. The message will be delivered Tuesday at a European Commission workshop convened to allow Google critics to voice concerns and seek clarity.

Google’s legal team will argue that the new regulatory demands, intended to reduce the dominance of platforms like Google Shopping and Google Flights, are backfiring. According to Clare Kelly, one of Google’s lawyers, the company’s efforts to comply have resulted in clunky interfaces, higher ticket prices, and a 30% drop in direct booking traffic for airlines, hotels, and restaurants across Europe.

“We remain genuinely concerned about real world consequences of the DMA, which are leading to worse online products and experiences for Europeans,” Kelly is expected to say, according to remarks seen by Reuters.

The Digital Markets Act, which came into force in March 2024, imposes strict obligations on companies designated as “gatekeepers”, like Alphabet’s Google, Apple, Amazon, Meta, Microsoft, and ByteDance. Violations can result in fines up to 10% of global annual revenue.

In response to DMA scrutiny, Google has modified its search display to better highlight rival services, but critics say the changes don’t go far enough to ensure genuine competition. Google’s Oliver Bethell will call on regulators to provide clearer compliance guidelines to avoid delays and uncertainty.

“If we can understand precisely what compliance looks like, not just in theory, but taking account of on-the-ground experience, we can launch compliant services quickly and confidently across the EEA,” Bethell will say.

He also challenges Google’s critics to provide evidence-based analysis of both the costs and benefits of proposed remedies. “We need help identifying the areas where we should focus,” Bethell will argue, urging for data-driven input that can be jointly assessed with the Commission.

The Commission’s workshop—attended by EU officials, competition experts, and Google rivals—aims to clarify compliance expectations and evaluate whether the DMA is achieving its stated goals without unintended negative consequences.

Malaysia’s Data Centre Boom Faces Setback as Power Tariff Hikes Bite

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Malaysia’s booming data centre industry is under pressure following the implementation of steeper-than-expected power tariff hikes on Tuesday, prompting operators to urgently reassess their business models and cost structures. The increases pose a threat to the country’s ambitions of becoming a regional digital investment hub, especially as it competes with neighbours like Singapore, Vietnam, and Thailand.

Electricity accounts for the majority of operational costs for data centres, and Malaysia’s historically low power rates have been a major draw for global tech giants such as Microsoft and Google. But the new pricing structure, announced last December and detailed last month, is set to raise electricity costs by 10% to 14% for major consumers—particularly those in the ultra-high voltage category.

Gary Goh, director of Sprint DC Consulting, warned that the cost burden could be substantial: “For a 100-megawatt facility, this could translate to an additional $15 million to $20 million annually, excluding the variable fuel surcharge.” The government plans to adjust that surcharge monthly based on fuel prices and exchange rates. For June, the rate is currently zero, according to Tenaga Nasional Berhad (TNB), the national grid operator.

However, uncertainty over tiered pricing bands and how surcharges will evolve is causing anxiety among investors. Many were not prepared for the scale of the increases, prompting a potential “wait-and-see” approach from some firms, industry sources say.

Malaysia is forecast to see the fastest growth in regional data centre energy demand, with its share expected to triple to 21% by 2027, according to a May report by Bain & Co, Google, and Temasek. Yet these recent developments could prompt investors to reconsider their commitments.

Cheam Tat Inn, managing director of Equinix Malaysia, said the new tariff structure shifts a larger share of grid management and infrastructure costs onto larger data centres. Equinix, which runs two data centres in Malaysia, is already exploring alternative energy providers to cushion the impact.

The government has defended the price hikes as essential to support social spending, but industry groups are warning of unintended consequences. Mahadhir Aziz, head of the Data Centre Association of Malaysia, said the government must reconsider its position, especially as competitors in the region offer alternative locations. “Even if companies have invested in land and buildings here, they can still reconsider their investments,” he said.

Tenaga declined to comment, directing questions to the Energy Commission, which has yet to respond.