The company was accused of placing cookies that breached privacy.
The Court of Appeal of England and Wales has favoured British computer users instead of Google, which wanted to prevent Britons from being able to sue the company in the country.
The hearing followed an earlier defeat for the tech giant in the English High Court when it ruled against Google, which tried to preventing three British computer users from having the right to sue it for breach of privacy.
Google reportedly ignored users’ demand not to have tracking cookies placed on their computers, and argued that the issue was not serious.
However, the court disagreed and issued a statement: "These claims raise serious issues which merit a trial.
"They concern what is alleged to have been the secret and blanket tracking and collation of information, often of an extremely private nature… about and associated with the claimants’ internet use, and the subsequent use of that information for about nine months.
"The case relates to the anxiety and distress this intrusion upon autonomy has caused."
The Court of Appeal also highlighted the judgement in the High Court that breach of privacy is a tort, which dismissed Google’s argument that it should only be actionable if there is a financial loss.