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Consumer Financial Protection Bureau Announced Friday It was placing Google’s payment arm under federal supervision. In response, Google filed a lawsuit seeking to block the move.
This oversight would subject Google to the same inspections the office conducts with major banks and other financial institutions for potential violations of the law. CFPB recently Final regulations Which brought payments and digital wallet services under its purview.
The CFPB announcement acknowledged that Google was opposing the designation. The office said that placing the company under surveillance “does no constitutes a finding that the entity has engaged in wrongdoing,” but notes that the company poses “risks to consumers.”
In this case, the office cited complaints that Google did not adequately investigate or explain the “alleged wrongful transactions,” and that the company failed to take reasonable steps to prevent fraud.
This follows previous reports that the CFPB has been negotiating with Google for months.
Reuters reports Google’s lawsuit argued that the CFPB was relying on a small number of unsubstantiated complaints about Google Pay, which was discontinued as a standalone app in the United States earlier this year.
“This is a clear case of government overreach regarding peer-to-peer Google Pay payments, which raised no risks at all, and indeed do.” No longer available “In the United States, we are challenging it in court,” a Google spokesperson said in a statement.
Regardless of how Google’s lawsuit plays out in court, the CFPB’s decision may also be overturned after Donald Trump’s presidential administration takes office in January.
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