The California-based Internet giant had applied to have the case thrown out on the grounds that a British court has no jurisdiction to deal with it.
The Internet users accuse Google of bypassing security settings on Apple's Safari browser to track their browsing and target them with personalised adverts.
High Court judge Michael Tugendhat ruled that British courts were the "appropriate jurisdiction" to try their claims.
"I am satisfied that there is a serious issue to be tried in each of the claimant's claims for misuse of private information," Tugendhat said.
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The case was brought by the Safari Users Against Google's Secret Tracking group, which includes a publisher and two IT security company directors.
"The Google argument that any trial should take place in California has not been accepted by the judge," a spokesman for the group said.
Google said it would ask Britain's Court of Appeal to hear its case.
"A case almost identical to this one was dismissed in its entirety three months ago in the US," a spokeswoman said.
Google faces privacy cases in a number of countries.
Last week, France's data protection watchdog fined the US giant USD 204,000 -- the maximum possible -- for failing to comply with its privacy guidelines.