Google is close to resolving a class action lawsuit in the United States over allegations that Android devices transferred user data to the company’s servers without clear permission. The proposed settlement is valued at about A$206 million and is awaiting final court approval.

A federal magistrate judge in California has granted preliminary approval for the agreement, allowing the case to move toward a final hearing scheduled for 23 June. The lawsuit was brought on behalf of Android users who claim the operating system transmitted information to Google even when their phones were not actively being used.

According to the claims, the data transfers occurred while devices were idle with applications closed and no direct interaction from the user. The lawsuit alleged that these background communications consumed mobile data from users’ cellular plans without compensation.

The group covered by the case includes people in the United States who used Android smartphones with internet access from 12 November 2017 until the date the court issues a final ruling. Individuals already involved in a similar case filed in California state court are not included in the federal class.

Under the proposed agreement, individual payments to eligible users will be capped at A$153 each. However, the judge overseeing the case indicated it is unlikely that the maximum payment will be reached once the settlement funds are distributed among the full group of claimants.

If the settlement receives final approval, the funds will be placed in a trust that earns interest until payments are made. Lawyers representing the class are expected to request about A$61 million in legal fees from the settlement pool, along with approximately A$1.15 million in expenses and costs. Administrative expenses linked to managing the settlement could reach around A$14.2 million.

The individuals who originally brought the case may also receive compensation of up to A$38,300 each for their role in representing the broader class.

As part of the agreement, Google would also introduce additional disclosures for Android users. When setting up a new Android device, users would receive information explaining that some system services may require internet connectivity and could use mobile data.

The updated terms would also clarify that certain background network communications may occur even when the device is not being actively used. In addition, a help page available to Android users would state that data exchanges could rely on cellular networks if a Wi-Fi connection is not available.

Before approving the settlement, the court examined whether the case met requirements for a class action, including whether the group of affected users was large enough and whether members experienced similar harm.

The judge noted that more than 100 million people in the United States used Android phones with cellular data plans during the period covered by the lawsuit, satisfying the requirement for a large class.

The court also determined that the claims were sufficiently similar because they centred on the same software processes present on most Android devices. According to the judge, handling the case as a single class action would be an efficient way to address common questions about the use of mobile data.

The legal dispute began in 2020 when Android users accused Google of improperly using their cellular data. A lower court initially dismissed the claims, but the decision was partially overturned on appeal. While one claim related to unjust enrichment was dismissed, another claim alleging conversion was returned to the lower court for further proceedings.

Following additional legal steps, the parties eventually reached a settlement agreement after negotiations resumed late last year.

Lawyers involved in the case have not publicly commented on the proposed settlement following the preliminary approval. The agreement will become final if the court grants approval at the hearing scheduled for June.