Google LLC plans to spend $500 million over the next decade to revamp its regulatory compliance efforts.

The Financial Times reported the initiative today, citing a court document filed on Friday. Google is proposing the compliance overhaul to settle a shareholder lawsuit that was brought against it four years ago. The investors who filed the complaint have already approved the proposal, but it will only become official after receiving court approval.

The lawsuit was brought in 2021 by two Michigan-based investment funds. They accused Google of engaging in anticompetitive practices across the search, advertising and mobile app markets. The complaint also charged that several of the company’s executives breached their fiduciary duties to investors. The latter issue, the plaintiffs argued, emerged because Google’s business practices exposed it to litigation. 

This past April, a federal judge found that the Alphabet Inc. unit maintained an illegal monopoly in the advertising technology market. A separate court earlier brought a similar ruling in connection with the company’s search business. Google plans to appeal both decisions. 

According to the Friday court filing, the company’s proposed overhaul of its regulatory compliance program comprises multiple elements.

Currently, Google’s compliance efforts are overseen by its board’s audit and compliance committee. The company has proposed shifting that responsibility to a new group of directors to be known as the risk and compliance committee. The group’s work is set to be supported by two other new committees. One will comprise vice presidents, while the second is expected to include managers from each of Google’s product teams.

The company is also proposing to upgrade its internal regulatory compliance policies. That includes its internal rules for processing non-compliance complaints and ensuring that partners comply with applicable laws. 

Notably, the proposed overhaul also extends to Google’s processes for managing agreements with third parties. Such contracts were a key part of the reason that the investors behind the lawsuit launched the litigation. According to plaintiffs, the contracts in question led to some of the search giant’s anticompetitive business practices.

“These reforms, rarely achieved in shareholder derivative actions, constitute a comprehensive overhaul of Alphabet’s compliance function,” the court filing stated.

Under Google’s proposal, the changes implemented as part of the program will remain in place for at least four years. The changes will apply to not only antitrust issues but also to Google’s regulatory compliance activities in other areas.   

“Over the years, we have devoted substantial resources to building robust compliance processes,” Google said in a statement today. “To avoid protracted litigation we’re happy to make these commitments.”

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