Zoom to Settle US Privacy Lawsuit for $85 mn

A Zoom App logo displayed on a smartphone. (File photo: AFP)
A Zoom App logo displayed on a smartphone. (File photo: AFP)
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Zoom to Settle US Privacy Lawsuit for $85 mn

A Zoom App logo displayed on a smartphone. (File photo: AFP)
A Zoom App logo displayed on a smartphone. (File photo: AFP)

Zoom, the videoconferencing firm, has agreed to settle a class-action US privacy lawsuit for $85 million, it said Sunday.

The suit charged that Zoom's sharing of users' personal data with Facebook, Google and LinkedIn was a breach of privacy for millions.

While Zoom denied wrongdoing, it did agree to improve its security practices.

The settlement needs to be approved by US District Judge Lucy Koh in San Jose, California.

A Zoom spokesman told AFP: "The privacy and security of our users are top priorities for Zoom, and we take seriously the trust our users place in us.

"We are proud of the advancements we have made to our platform, and look forward to continuing to innovate with privacy and security at the forefront."

The settlement will set up a "non-reversionary cash fund of $85 million to pay valid claims, notice and administration costs, Service Payments to Class Representatives, and any attorneys' fees and costs awarded by the Court," according to the preliminary settlement.

All class members are eligible for payment, it said.

Those who paid for an account can receive 15 percent of the money they paid to Zoom for their core subscription during that time or $25, whichever is greater; while those who did not pay for a subscription can make a claim for $15.

As the coronavirus pandemic closed offices due to health risks and companies shifted to working online, use of video and collaboration platforms hosted by companies including Zoom, Slack, Microsoft, and Google rocketed.

But Zoom's rapid growth came with pressure to deal with security and privacy as the platform faced scrutiny from rising usage.



Trump Joins Tech and Energy Executives amid AI Push

A car drives past a building of the Digital Reality Data Center in Ashburn, Virginia, US, March 17, 2025. REUTERS/Leah Millis/File Photo
A car drives past a building of the Digital Reality Data Center in Ashburn, Virginia, US, March 17, 2025. REUTERS/Leah Millis/File Photo
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Trump Joins Tech and Energy Executives amid AI Push

A car drives past a building of the Digital Reality Data Center in Ashburn, Virginia, US, March 17, 2025. REUTERS/Leah Millis/File Photo
A car drives past a building of the Digital Reality Data Center in Ashburn, Virginia, US, March 17, 2025. REUTERS/Leah Millis/File Photo

President Donald Trump will join executives from some of the largest US tech and energy companies for a summit in Pittsburgh on Tuesday as the administration prepares fresh measures to power the US expansion of artificial intelligence.

Top economic rivals US and China are locked in a technological arms race over who can dominate AI as the technology takes on increasing importance everywhere from corporate boardrooms to the battlefield.

The Energy and Innovation Summit at Carnegie Mellon University is expected to bring tech executives and officials from top energy and tech firms including Meta, Microsoft, Alphabet and Exxon Mobil to discuss how to position the US as a leader in AI. Trump will use the summit - put together by US Senator Dave McCormick, a Republican ally from Pennsylvania - to announce some $70 billion in artificial intelligence and energy investments in the state, Reuters reported.

Big Tech is scrambling to secure vast amounts of electricity supplies to power the energy-guzzling data centers needed for its rapid expansion of artificial intelligence. Companies began announcing their plans in early on Tuesday, with Google inking a $3 billion electricity deal and CoreWeave touting a $6 billion AI data center.

Google will invest $25 billion in regional data centers, while FirstEnergy will invest $15 billion in Pennsylvania's energy grid, Semafor reported. The CEOs expected to attend include Khaldoon Al-Mubarak of Mubadala, Rene Haas of Arm, Larry Fink of BlackRock, Darren Woods of ExxonMobil, Brendan Bechtel of Bechtel and Dario Amodei of Anthropic. The White House is considering executive actions in the coming weeks to make it easier for power-generating projects to connect to the grid and also provide federal land on which to build the data centers needed to expand AI technology, Reuters previously reported.

The administration is also weighing streamlining permitting for data centers by creating a nationwide Clean Water Act permit, rather than requiring companies to seek permits on a state-by-state basis.

Mike Sommers, head of the influential American Petroleum Institute, said executive action is welcomed to unlock the energy needed to power the data centers, but a more durable solution is needed.

"Real durable permitting reform requires an act of Congress, not just an executive order," Sommers said in an interview with Reuters. Trump ordered his administration in January to produce an AI Action Plan that would make "America the world capital in artificial intelligence" and reduce regulatory barriers to its rapid expansion.

That report, which includes input from the National Security Council, is due by July 23. The White House is considering making July 23 "AI Action Day" to draw attention to the report and demonstrate its commitment to expanding the industry, Reuters has reported.

US power demand is hitting record highs this year after nearly two decades of stagnation as AI and cloud computing data centers balloon in numbers and size across the country. The demand is also leading to unprecedented deals between the power industry and technology companies, including the attempted restart of the Three Mile Island nuclear power plant in Pennsylvania between Constellation Energy and Microsoft.

The surge has led to concerns about power shortages that threaten to raise electricity bills and increase the risk of blackouts, while slowing Big Tech in its global race against countries like China to dominate artificial intelligence.