Google will spend $500 million over 10 years to revamp its compliance structure in order to settle a shareholder lawsuit that accused the tech giant of antitrust violations.
The settlement, according to paperwork filed late on Friday, will have Google create a “Risk and Compliance Committee,” which will be dedicated to making sure the company does not violate regulatory laws. The RCC, which will include Google board members, will report to Sundar Pichai, the CEO of parent company Alphabet.
Alphabet will also create a committee of senior vice presidents who are “committed to the implementation of advanced, elaborate internal compliance mechanisms,” according to the settlement.
The new committees “should ensure that the well-designed new regulatory-compliance enhancements are implemented fully,” the settlement added; you can read the full filing courtesy of Bloomberg Law.
As for the funding, the $500 million will be used to make “comprehensive reforms” to Google’s global compliance structure.
The settlement stems from a 2021 lawsuit in which a Michigan pension fund accused Google of violating its fiduciary responsibility by getting caught up in antitrust investigations. That initial litigation accused Google of “prolonged and ongoing monopolistic and anticompetitive business practices.”
Google did not admit any wrongdoing as part of the settlement, and the deal still needs to be approved by a San Francisco judge.
The settlement comes as Alphabet is facing growing regulatory pressure. In April, Google was found to have an illegal monopoly for the second time in less than a year, with a federal judge ruling its ad business stamped out competition and “substantially harmed” its customers.
You can read more about the potential break-up of Google’s business by clicking here.
