Google has agreed to settle a lawsuit by destroying billions of data records that alleged the tech giant secretly tracked the internet use of people who believed they were browsing privately. The terms of the settlement were filed in the Oakland, California federal court and require approval by U.S. District Judge Yvonne Gonzalez Rogers. The settlement, valued at more than $5 billion, stems from a class action lawsuit filed in 2020 covering millions of Google users who used private browsing since June 1, 2016.

Users claimed that Google's analytics, cookies, and apps allowed the company to improperly track individuals who set their browsers to “Incognito” mode or “private” browsing mode. As part of the settlement, Google will update disclosures about what it collects in private browsing and allow Incognito users to block third-party cookies for the next five years. This move is expected to result in Google collecting less data from users' private browsing sessions and making less money from that data.

David Boies, a lawyer for the plaintiffs, described the settlement as a "historic step in requiring honesty and accountability from dominant technology companies." The agreement, reached in December, was announced in court on Monday, with Google supporting final approval of the settlement while disagreeing with the plaintiffs' legal and factual characterizations. The plaintiffs' lawyers plan to seek unspecified legal fees payable by Google in the future.

The settlement also requires Google to change its Incognito mode so that users can block third-party cookies by default for the next five years. The legal filing noted that Google will "delete and/or remediate billions of data records that reflect class members' private browsing activities." The settlement is seen as a significant move towards holding tech companies accountable for their data collection practices and ensuring transparency for users. Neither Google nor the plaintiffs' lawyers immediately responded to requests for comment on the settlement.