Google is facing a potential payout of up to £3.2bn over claims it collected data on millions of iPhone users, the search giant has revealed.

The group representing iPhone users, known as Google You Owe Us, represents 4.4 million people in a class action law suit which is taking action against the tech company, according to documents filed at High Court on Monday.

The claim, led by former Which? director Richard Lloyd, says Google unlawfully collected people’s personal information by evading Apple’s iPhone default privacy settings.

They claim this took place between August 2011 and February 2012 to divide people into categories for advertisers.