Google settles a major antitrust lawsuit – but it's not the one making headlines
One lawsuit is over, but the company’s fight to avoid a historic breakup is far from finished
While all eyes are on Google's high-stakes legal battle with the U.S. Department of Justice over its alleged search monopoly, the company just quietly resolved a different, yet equally significant, legal headache.
Today, Google's parent company agreed to a $500 million compliance overhaul to settle a shareholder lawsuit accusing the company of failing to prevent antitrust violations. The case, filed on behalf of the company by investors, targeted top executives including CEO Sundar Pichai and co-founders Larry Page and Sergey Brin.
Unlike the DOJ’s broader attempt to potentially break up Google’s search business, this lawsuit focused on internal governance failures. Shareholders alleged that Alphabet’s leadership ignored growing antitrust risks tied to its core businesses, including Search, Ad Tech, Android, and app distribution. They claimed the company’s board failed to act on red flags, exposing Alphabet to regulatory consequences that might have been avoided with stronger oversight.
As part of the settlement, Alphabet has committed to major structural changes. The company will establish a standalone risk and compliance committee at the board level, separate from its audit group. A new senior vice president role will be created to oversee compliance, reporting directly to Pichai. Additionally, a compliance committee made up of product managers and internal experts will be embedded within Google’s teams to monitor and address regulatory issues. These reforms must remain in place for at least four years.
Despite denying any wrongdoing, Google said it was “happy to make these commitments” in order to avoid prolonged litigation. Shareholders will not receive direct compensation, but their legal team is expected to seek up to $80 million in attorney fees, in addition to the $500 million Alphabet has agreed to spend on compliance efforts over the next decade.
It is important to note that this settlement does not mark the end of Google’s legal troubles. Just hours after the deal was disclosed, Judge Amit Mehta wrapped up hearings in the DOJ’s major antitrust case, which could result in drastic remedies such as forcing Google to divest Chrome or share search data with competitors. A ruling is expected by August.
As part of the settlement, Alphabet has committed to major structural changes. The company will establish a standalone risk and compliance committee at the board level, separate from its audit group. A new senior vice president role will be created to oversee compliance, reporting directly to Pichai. Additionally, a compliance committee made up of product managers and internal experts will be embedded within Google’s teams to monitor and address regulatory issues. These reforms must remain in place for at least four years.
Over the years, we have devoted substantial resources to building robust compliance processes. To avoid protracted litigation, we're happy to make these commitments.
— Google spokesperson, June 2nd, 2025
It is important to note that this settlement does not mark the end of Google’s legal troubles. Just hours after the deal was disclosed, Judge Amit Mehta wrapped up hearings in the DOJ’s major antitrust case, which could result in drastic remedies such as forcing Google to divest Chrome or share search data with competitors. A ruling is expected by August.
From my perspective, 2025 is shaping up to be one of the most challenging years yet for Big Tech. Google and Apple are under increasing pressure as regulators around the world push back against their dominance. This settlement may signal Alphabet’s willingness to evolve, but it also highlights the mounting scrutiny tech giants continue to face.
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