The lawsuit, filed in June, alleges Google violates wiretapping and privacy laws by continuing to "intercept, track, and collect communications" even when people use Chrome's incognito mode and other private web browser modes.

US District Judge Lucy Koh in San Jose, California, wrote in her ruling that the court concludes that Google did not notify users that Google engages in the alleged data collection while the user is in private browsing mode.

She denied the tech giant's request for dismissal of the lawsuit, which seeks class-action status.

The lawsuit, which seeks at least $5 billion from Google and its parent company, Alphabet, alleges the company surreptitiously collects data through Google Analytics, Google Ad Manager, website plug-ins and other applications, including mobile apps.

Google "cannot continue to engage in the covert and unauthorised data collection from virtually every American with a computer or phone", the complaint said.

The proposed class action likely includes "millions" of Chrome users who had tried browsing the internet in a private mode — and seeks $5,000 damages per user "or three times actual damages, whichever is greater, for violations of federal wiretapping and California privacy laws".