Google is in the middle of a number of legal proceedings at the moment, including its search and ad monopoly cases with the DOJ. While we’re waiting for more information regarding that, Alphablet has just settled another case. The company settled a case with shareholders over Google antitrust lawsuit.
Google will have to spend at least $500 million following shareholder antitrust lawsuit
The company basically had to answer to its shareholders regarding the search monopoly antitrust case. Based on a report from The Financial Times, Alphabet has reached a preliminary settlement with shareholders who sued the company.
Alphablet basically got sued because it allowed anticompetitive behavior. The shareholders stated that the lawsuit exposed the company to “reputational damage” and “substantial costs.”
Alphabet will need to rebuild its “global compliance structure” as a result of the settlement. That will cost Alphabet at least $500 million over the course of the next 10 years. Alphabet will need to establish a committee within the Alphabet board to oversee regulatory issues.
A new body made up of senior executives would meanwhile report directly to chief executive Sundar Pichai,” says the report. Another group, however, consists of “product managers and internal compliance experts.”
A committee will be formed to keep the company on the right path
The goal is to avoid business decisions that led Google down the wrong path. Do note that this is only a preliminary settlement. A judge did not approve of it, though, so that will need to happen before anything decided goes into play.
This could be one of the most crucial decisions that will force a change within Alphabet. Its monopoly lawsuits will definitely make a huge impact as well, of course. As a side note, the remedies trial in Google’s search monopoly trial ended recently, and a decision is expected in August.
