Google has filed a lawsuit against the Consumer Financial Protection Bureau (CFPB), challenging the agency’s decision to place its payment division under federal supervision. The company claims that the CFPB’s supervision would be “burdensome” and based on an “unsubstantiated number of complaints”.
The CFPB had announced supervisory authority over Google Payment Corp, citing customer complaints about errors in money transfers. However, Google maintains that its payment products never posed a risk to users. The company argues that the agency’s decision is a form of government overreach.
Google alleges that the CFPB set an “exceedingly low bar” for what it considers risks to consumers, and that the discontinuation of Google’s payment products did not release it from agency supervision. The company seeks to overturn the CFPB’s authority over its payments division.
The dispute comes amid growing competition in financial services among big tech companies like Google, Apple, and Samsung. The CFPB aims to protect consumers by overseeing nonbank financial institutions that pose a risk to them.
Source: https://edition.cnn.com/2024/12/06/business/google-pay-lawsuit-cfpb/index.html