Jakarta, CNBC Indonesia – Alphabet, which is Google's parent, agreed to pay US$ 350 million or the equivalent of Rp. 5.4 trillion to settle a class action lawsuit related to data leaks on the Google+ platform.
For your information, Google+, which used to be a social media created by Google, is no longer operational. However, while it was still active, this platform was accused of leaking the personal data of millions of its users.
The company discovered a data leak in 2018. The lawsuit was filed because Google was deemed to have covered up the data leak.
The lawsuit was led by Rhode Island Treasurer James Diossa to secure pension funding in the US state. It is known that Rhode Island has shares in Alphabet.
From the court decision, it is known that Google did not announce the Google+ data leak when it first detected it. The reason is that Google is afraid of being criticized by the public and regulators.
According to Diossa, at that time the Facebook data leak case within Cambridge Analytica was still relatively new, namely in 2016. Facebook received criticism everywhere because of this case.
Diossa assessed that Google was afraid it would suffer the same fate as Facebook, so it covered up the leak of Google+ user data.
However, in the end the data leak was discovered by the public. Alphabet's shares collapsed several times as a result. The giant also lost billions of US dollars in market value.
According to documents filed in the Northern District of California District Court, people who purchased Google stock between April 23, 2018 and April 30, 2019 will be allowed to apply for stock compensation of a certain value.
[Gambas:Video CNBC]
Next Article
Update on the Google Case, the Future of the Internet is in Waves
(fab/fab)