Texas Attorney General Paxton Secures Record-Breaking $2.775 Billion from Big Tech in Data Privacy Crusade

Texas Attorney General Ken Paxton has emerged as the nation's most aggressive enforcer of data privacy rights, securing a combined $2.775 billion in settlements from tech giants Google and Meta over the past year through unprecedented legal actions targeting unauthorized collection of Texans' biometric data, location tracking, and private browsing activities. The Republican attorney general announced in July 2025 that his office had established the largest state-level privacy enforcement initiative in the country, positioning Texas as the national leader in holding Big Tech accountable for violations of consumer data protection laws.

Paxton's Privacy and Tech Team has conducted investigations into more than 200 companies over the past year, including data brokers, car manufacturers, social media companies, and Chinese technology firms, according to the Texas Attorney General's office.

Historic Google Settlement for $1.375 Billion Recovery

The centerpiece of Paxton's anti-Big Tech campaign is a $1.375 billion settlement reached with Google in May 2025, marking the largest state-level recovery against the search giant for violations of data privacy laws. The agreement resolves two separate lawsuits filed in 2022 that accused Google of systematically violating Texas consumer protection laws.

"In Texas, Big Tech is not above the law. For years, Google secretly tracked people's movements, private searches, and even their voiceprints and facial geometry through their products and services. I fought back and won," Paxton said in announcing the settlement.

The litigation centered on three key allegations against Google's data collection practices. First, the state argued that Google tracked users' geolocation even when they believed they had disabled location features. Second, Texas claimed the company misled users about the privacy protections of Chrome's Incognito mode, which is marketed as providing private browsing. Third, the lawsuit alleged that Google collected biometric data, including voiceprints and facial geometry, through products like Google Photos and Google Assistant without obtaining proper consent.

This settlement dwarfs previous state-level recoveries against Google for similar violations. The largest prior state settlement with Google for data privacy issues was $93 million, while a coalition of forty states previously secured a combined $391 million, almost a billion dollars less than Texas's individual recovery.

Meta's Massive Payout of $1.4 Billion for Biometric Violations

Even before the Google settlement, Paxton had already secured another historic victory against Meta, the parent company of Facebook and Instagram. In July 2024, Texas reached a $1.4 billion agreement with Meta to resolve allegations that the company unlawfully collected and used facial recognition data from millions of Texans.

The Meta settlement addressed claims that the social media giant captured and used biometric data without proper consent, thereby violating Texas's biometric privacy laws, which require companies to obtain clear, informed consent before collecting sensitive identifiers, such as fingerprints, voice recordings, or facial scans.

Combined, these two settlements represent the largest individual state recoveries in U.S. history for data privacy violations, establishing Texas as the most successful state in holding tech companies accountable for privacy breaches.

A Comprehensive Privacy Enforcement Strategy

Paxton's data privacy offensive extends far beyond high-profile settlements with major tech companies. According to the Attorney General's office, Texas has become the first state to file suit under a comprehensive state data privacy law and has achieved several other groundbreaking enforcement actions.

The state has become the first to sue General Motors for allegedly selling driving data to car insurers, highlighting privacy concerns in the automotive sector. Texas also reached what officials described as a "first-of-its-kind generative AI settlement," resolving allegations that a company misrepresented the efficacy of its healthcare AI product.

Paxton's office has filed suit against TikTok for allegedly failing to protect children online and launched investigations into Character.AI, Reddit, Instagram, Discord, and other companies regarding their data privacy and safety practices for children. The office has also taken action against a Chinese artificial intelligence company that was allegedly violating Texas privacy law.

Data Broker Crackdown

The Attorney General's aggressive enforcement has extended to the often-overlooked data broker industry. Texas has issued dozens of privacy violation notices to companies violating the Texas Data Privacy and Security Act and has taken aggressive action against noncompliant data brokers.

As a result of this enforcement campaign, the number of data brokers registered with the Texas Secretary of State has increased to over 200, according to the Attorney General's office. This represents a significant expansion of regulatory oversight in a sector that has historically operated with minimal supervision.

Texas Privacy Laws Provide Strong Foundation

Paxton's enforcement successes are built on a robust framework of Texas privacy laws, including the recently enacted Texas Data Privacy and Security Act (TDPSA), which took effect on July 1, 2024. The state's legal arsenal also includes the Biometric Identifier Act and the Deceptive Trade Practices Act, which provide multiple avenues for challenging improper data collection practices.

The biometric privacy laws are particularly robust, requiring companies to obtain clear, informed consent before collecting sensitive biometric identifiers, such as fingerprints, voice recordings, or facial geometry. These laws have proven especially effective against tech companies that integrate biometric features into consumer products without adequate disclosure.

Tech Industry Response

Both Google and Meta have settled their respective cases without admitting any wrongdoing or liability. Google spokesperson José Castañeda characterized the settlement as resolving "a raft of old claims, many of which have already been resolved elsewhere, concerning product policies we have long since changed".

"We are pleased to put them behind us, and we will continue to build robust privacy controls into our services," Castañeda said in a statement.

Notably, the Google settlement does not require the company to modify its existing products or implement additional consumer disclosures. This aspect of the agreement allows Google to resolve the legal claims while maintaining its existing business operations largely unchanged.

The settlements reflect a strategic calculation by tech companies to resolve legacy privacy issues through financial payments rather than operational changes that might affect their core business models.

Texas as Privacy Enforcement Leader

Paxton's aggressive approach has positioned Texas as the national leader in state-level privacy enforcement, creating a model that other states may follow. The attorney general has explicitly framed Texas as "the watchdog for the nation's privacy rights and freedoms".

"Over the past year, I've taken strong action against Big Tech, foreign entities, and other bad actors who sought to illegally use Texans' private and sensitive data. And we have won, achieving historic, record-setting settlements against companies such as Google and Meta," Paxton stated.

The success of Texas's enforcement strategy could encourage other state attorneys general to adopt similar aggressive approaches to privacy enforcement, potentially creating a patchwork of state-level regulations that tech companies must navigate.

Financial Impact: Where the Money Goes

While both the Google and Meta settlements represent massive financial recoveries for Texas, neither the state nor the companies has disclosed how the settlement funds will be used. The Attorney General's office has not provided details on whether the money will be allocated to the state's general fund, used to support privacy enforcement activities, or used to provide restitution to affected consumers.

This lack of transparency regarding fund allocation has drawn criticism from privacy advocates, who argue that consumers whose data was allegedly misused should receive direct compensation from the settlements.

Future of State Privacy Enforcement

As Texas continues to establish itself as the nation's most aggressive state-level privacy enforcer, the implications extend far beyond individual settlements. The success of Paxton's approach may inspire other states to enhance their own privacy enforcement capabilities and could influence federal regulatory approaches to overseeing tech companies.

The combined $2.775 billion in settlements from Google and Meta demonstrates that state-level enforcement can achieve meaningful financial accountability from major tech companies. However, the long-term effectiveness of this approach will depend on whether these financial penalties ultimately lead to meaningful changes in corporate data collection practices or simply become a cost of doing business for tech giants with massive revenue streams.

Paxton's privacy enforcement campaign has established Texas as a formidable force in holding Big Tech accountable for data protection violations, setting a precedent that could reshape how states approach corporate privacy enforcement nationwide. As investigations into more than 200 companies continue, Texas appears poised to maintain its leadership role in the evolving landscape of digital privacy rights protection.