Google Antitrust Violations Prompt $500M Compliance Overhaul

The plaintiffs, led by two Michigan pension funds, claim Alphabet’s leaders exposed the company to antitrust risks in its search, Ad Tech, Android, and app distribution businesses.

The proposed reforms include:

• Establishing a standalone Risk and Compliance Committee separate from the Audit Committee.

• Creating a senior executive-level regulatory committee that will report directly to CEO Sundar Pichai.

• Forming a compliance working group comprised of product managers and internal experts.

The reforms must remain in place for at least four years. Notably, no monetary damages will be paid to shareholders, although their legal team plans to request up to $80 million in legal fees and expenses.

Patrick Coughlin, attorney for the plaintiffs, remarked: “We didn’t see the board getting the fulsome reports it should have gotten regarding antitrust risks. There are things it could have done, and should have done, earlier.”

Full case details can be viewed on Bloomberg Law.