The internet giant was taken to court by the Australian Competition and Consumer Commission (ACCC) in 2019, who alleged that Android phone settings were misleading.
The ACCC accused Google of keeping the location data of some users even if they had “Location History” turned off.
Another setting titled “Web & App Activity” also allowed location data to be shared with Google, the ACCC said.
“This significant penalty imposed by the court today sends a strong message to digital platforms and other businesses, large and small, that they must not mislead consumers about how their data is being collected and used,” ACCC chair Gina Cass-Gottlieb said.
“Companies need to be transparent about the types of data that they are collecting and how the data is collected and may be used, so that consumers can make informed decisions about who they share that data with,” Cass-Gottlieb said.
“This is the first public enforcement outcome arising out of the ACCC’s Digital Platforms Inquiry.”
The setting was enabled by default from 2017-2018 on phones running on the Android operating system.
At least 1.3 million people may have viewed the settings page during this time.
A Google spokesperson confirmed the penalty, emphasizing that the issue was rectified before the court proceedings were initiated.
“We’ve invested heavily in making location information simple to manage and easy to understand with industry-first tools like auto-delete controls, while significantly minimizing the amount of data stored,” Google said.
“As we’ve demonstrated, we’re committed to making ongoing updates that give users control and transparency, while providing the most helpful products possible.”