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Alphabet Commits $500M to Compliance Overhaul in Settlement

By  |  June 2, 2025

Google’s parent company, Alphabet, has agreed to spend a minimum of $500 million over the next decade to strengthen its global compliance operations as part of a proposed settlement in a shareholder lawsuit, according to Financial Times. The agreement, which still awaits court approval, marks a significant shift in the company’s response to intensifying regulatory scrutiny and antitrust challenges.

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    Filed in a California federal court last week, the settlement stems from a case brought by a Michigan pension fund in 2021. The plaintiffs accused Alphabet and several of its current and former executives of enabling anti-competitive practices that led to costly enforcement actions and reputational harm. Per Financial Times, Alphabet has not admitted any liability as part of the deal.

    Central to the agreement is the creation of a dedicated compliance committee within Alphabet’s board of directors. This new group would focus solely on regulatory oversight. In addition, a team of senior executives will report directly to CEO Sundar Pichai on compliance matters, with support from product managers and internal risk experts. These measures are set to remain in place for at least four years.

    The move comes amid mounting legal challenges for the Silicon Valley giant. U.S. courts have found that Google abused its dominance in several markets, including online search, digital advertising, and mobile app distribution. In one high-profile case last year, a jury concluded that Google had leveraged its control over the Play Store to reap excessive profits, a verdict that deepened concerns about the company’s competitive practices.

    Related: DOJ Opens Antitrust Probe of Google’s AI Partnership with Character.AI

    Alphabet’s legal troubles have extended beyond the courtroom to how it handles internal communications. In December 2023, a federal judge reprimanded the company for failing to preserve records in a lawsuit brought by Epic Games. The judge summoned Alphabet’s top legal officer, Kent Walker, to explain the company’s document retention practices, after accusations of evidence deletion surfaced. According to Financial Times, similar issues were flagged by the U.S. Department of Justice (DoJ), which accused Google of deliberately avoiding documentation that could be used by regulators.

    The DoJ has already secured two victories against Google—one over its search engine monopoly in August 2024 and another in April 2025 regarding its digital advertising practices. These outcomes have fueled speculation over a potential breakup of the tech conglomerate, although any structural changes are likely to be delayed by ongoing appeals.

    If approved by the judge, the settlement represents a rare outcome in shareholder litigation, involving significant governance reforms rather than financial penalties alone.

    Source: Financial Times