Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Google battles landmark UK class action over alleged iPhone tracking

Published 04/28/2021, 09:38 AM
Updated 04/28/2021, 11:40 AM
© Reuters. FILE PHOTO: Picture illustration of a silhouette of a mobile user next to a screen projection of the Apple logo
GOOGL
-
AAPL
-
META
-
GOOG
-

By Kirstin Ridley

LONDON (Reuters) -A proposed multi-billion pound British class action against Google (NASDAQ:GOOGL), which alleges the internet giant secretly tracked millions of iPhone users, is not viable and should not be allowed to proceed, the Supreme Court was told on Wednesday.

Antony White, a lawyer for Google, told the first day of a two-day hearing that any maiden, U.S.-style data protection lawsuit could only seek redress under English laws if a data breach led to claimants suffering damage.

"It is not my case that loss of personal data may not have serious consequences, but it may not always do so in a way that attracts compensation," he said, adding that any uniform award would also fail to take into account differing phone usage.

Richard Lloyd, former director of consumer rights group Which?, is leading the landmark claim that seeks to extend Britain's fledgling class action regime and could set the scene for vast, similar data protection claims against tech giants such as Facebook (NASDAQ:FB), TikTok and YouTube.

The case, brought on behalf of more than five million Apple (NASDAQ:AAPL) iPhone users, hinges on what damages can be recovered by consumers for data breaches and whether class actions can be used to claim them.

Lloyd, who says he wants to hold the world's biggest companies to account, has estimated that people who used iPhones between 2011 and 2012 could be owned redress of more than 3 billion pounds ($4.2 billion) if any future trial succeeds.

He alleges that Google illegally took iPhone users' personal data by tracking internet browsing histories and used this to sell a lucrative, targeted advertising service.

"Google makes billions of pounds in revenue from advertising based on our personal data every year," he said in a statement. "It is only right that they should be held to account for profiting from the misuse of that personal data."

Experts say the case is "hugely significant" and urge businesses to be fair and transparent when harvesting and using troves of personal data for commercial gain.

"If the judgment goes in favour of the claimants, we will see the floodgates open to a tsunami of representative data class actions in the UK," said Julian Copeman, a partner at Herbert Smith Freehills.

Critics of "opt out" class actions, which automatically bind a defined group into a lawsuit unless individuals opt out, say they can lead to claims without merit and lush profits for litigators and their funders.

Proponents say they allow easier access to justice, especially when individual claims are too small to pursue individually, and that alternative "opt in" lawsuits, where every claimant signs up, are costly and time-consuming.

The Confederation of British Industry, a trade body, says such cases could be "highly detrimental", noting the risk of ruinous damages awards could prompt settlements regardless of the merits of a case.

© Reuters. FILE PHOTO: Picture illustration of a silhouette of a mobile user next to a screen projection of the Apple logo

"It's a ground-breaking case that could result in a bank-breaking financial hit," said Rafi Azim-Khan, head of data privacy at law firm Pillsbury.

($1 = 0.7201 pounds)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.