The US Consumer Financial Protection Bureau (CFPB) has placed Google Payment Corp. under federal supervision, citing nearly 300 consumer complaints of fraud and scams. The company immediately challenged the decision in court, arguing that a product it no longer offers is incapable of posing risk.
The CFPB said the law allows for supervision even if the services are discontinued, but Google Payment claims the regulator relied on unsubstantiated complaints about a product that no longer exists. This marks a government tussle with Silicon Valley giant Google in the final weeks of President Joe Biden’s administration.
The decision comes as part of new regulations finalized by the CFPB last month, which subject tech companies to the same supervision currently faced by banks if they offer digital wallets and payment services. The CFPB has also persisted in rulemaking despite calls from Republican lawmakers to desist.
However, the regulator’s move could be reversed after President-elect Donald Trump returns to the White House in January, according to sources.
Source: https://www.reuters.com/technology/us-regulator-places-google-payment-corp-under-supervision-2024-12-06