Google to Spend $500M Over 10 Years to Revamp Compliance in Antitrust Settlement

Google to Spend $500M Over 10 Years to Revamp Compliance in Antitrust Settlement

Last Updated Jun - 03 - 2025, 01:15 PM | Source : Fela News

Google agrees to a $500M compliance overhaul as part of a shareholder lawsuit settlement over antitrust risks. No wrongdoing admitted; major changes include new

Google has agreed to invest $500 million over the next decade to revamp its compliance systems, as part of a settlement in a shareholder lawsuit accusing the tech giant of antitrust violations, according to court documents. The proposed settlement, involving officials at Google’s parent company Alphabet—including CEO Sundar Pichai and co-founders Sergey Brin and Larry Page—was submitted late Friday and still needs approval from U.S. District Judge Rita Lin in San Francisco.

As part of the deal, Alphabet will establish a new, independent board committee dedicated to overseeing risk and compliance—responsibilities that were previously handled by the board’s audit and compliance committee. Additionally, a senior vice president-level committee will be created to handle regulatory and compliance matters, reporting directly to Pichai. Another compliance group, made up of Google product team leaders and internal compliance professionals, will also be formed.

Though the company denied any wrongdoing, it agreed to the settlement to avoid prolonged legal battles. “We’ve long invested in building strong compliance practices,” Google said in a statement on Monday. “To avoid drawn-out litigation, we’re satisfied with these commitments.”

The lawsuit, brought by shareholders including two Michigan pension funds, accused Alphabet leadership of breaching their fiduciary duties by exposing the company to antitrust risks across its search, advertising, Android, and app distribution businesses.

Shareholders’ attorneys described the reforms as a rare and far-reaching overhaul of Alphabet’s compliance infrastructure, saying the measures will foster significant cultural change within the company. The new compliance structure must remain in place for at least four years. No financial compensation will be given to shareholders.

Patrick Coughlin, one of the shareholders’ attorneys, said in an interview Monday that the settlement is among the largest of its kind for implementing regulatory oversight committees. “We didn’t think the board was receiving complete reports on antitrust issues,” he said. “There were actions it could have and should have taken earlier.”

The settlement emerged the same day U.S. District Judge Amit Mehta in Washington concluded a hearing on remedies after previously finding that Google violated federal antitrust law to maintain its dominance in online search. Mehta is expected to issue a ruling by August. The U.S. Department of Justice has recommended that Google divest its Chrome browser and share its search data with competitors.

In derivative lawsuits like this one, shareholders sue company executives on behalf of the corporation. The shareholders’ legal team is expected to request up to $80 million in attorneys' fees and costs, in addition to the $500 million Alphabet has agreed to spend.

Share :