After shareholder lawsuit, Google pledges $500M into antitrust damage control
What's the story
In a significant move to address shareholder concerns, Google has agreed to invest $500 million over the next decade to revamp its compliance infrastructure.
This decision comes as part of a settlement in a shareholder derivative lawsuit that accused Alphabet's executives of breaching fiduciary duties.
The move is aimed at steering Google away from anti-competitive practices that have drawn antitrust scrutiny.
Under the settlement terms, Alphabet will set up a board-level committee focused on regulatory compliance and antitrust risk management.
Direct oversight
New committee to report directly to CEO Sundar Pichai
The newly formed committee will report directly to Alphabet CEO Sundar Pichai.
The company has also promised reforms at other levels, enabling employees to flag potential legal issues before they become major problems.
Google has also agreed to keep a record of communications, after facing criticism for its auto-deleting chats in antitrust cases.
Legal process
Settlement awaits approval from US District Judge Rita Lin
The settlement is still pending approval from US District Judge Rita Lin in San Francisco.
Although Alphabet doesn't admit to any wrongdoing, it might have to pay tens of millions in legal fees on top of the promised $500 million investment.
A Google spokesperson said, "Over the years, we have devoted substantial resources to building robust compliance processes."
Allegations
Lawsuit alleges Google harmed its future with anti-competitive practices
The lawsuit, a consolidated derivative litigation, was filed in 2021 by a Michigan pension fund.
It accused Google of harming its future because of its "prolonged and ongoing monopolistic and anti-competitive business practices."
The allegations have only gained more weight in recent years.Between 2023 and early 2025, Google lost three major antitrust cases—first over app distribution (Epic Games), then for maintaining a search monopoly, and most recently, for anticompetitive practices in advertising.