Google sues US Consumer Financial Protection Bureau over federal supervision order for Google Pay

Date:
Mon, 09 Dec 2024 17:04:00 +0000

Description:
Google is unhappy with its federal supervision order from the Consumer Financial Protection Bureau.

FULL STORY ======================================================================US Consumer Financial Protection Bureau recently put Google under supervision
The federal action comes amid consumer complaints Google says the regulation would be a burden

The Consumer Financial Protection Bureau (CFPB) recently announced it has placed Google Payment Corp, a division of Google under federal supervision, citing consumer complaints.

In response, Google filed a lawsuit in the US District Court challenging the agencys decision stating that the Bureaus supervision would be a burdensome form of regulation based on a small number of unsubstantiated user complaints (via CNN ).

The CFPBs move would subject Google to the same regulatory oversight as major banks and financial institutions. Google hits back at federal supervision order

This is a clear case of government overreach involving Google Pay
peer-to-peer payments, which never raised risks and is no longer provided in the US, and we are challenging it in court," noted Google spokesperson Jos Castaeda.

The CFPB emphasized that its decision does not imply any findings of misconduct, but rather that complaints have indicated that Google Payment
Corp failed to implement sufficient fraud prevention measures.

The supervision follows the CFPBs 202 expansion of authority, which allowed
it to begin examining nonbank financial institutions. Back then, CFPB
Director Rohit Chopra said: This authority gives us critical agility to move as quickly as the market, allowing us to conduct examinations of financial companies posing risks to consumers and stop harm before it spreads.

Besides stating the CFPBs decision for supervision imposes an unjustified regulatory burden upon Google, including invasive examinations and document requests, the company also disputes the validity of the complaints as a basis for federal oversight.

However, all is not lost for Google, which could benefit from the incoming presidential administration President-elect Trump could reverse some of the regulatory actions initiated under current leadership.

TechRadar Pro has asked the Consumer Financial Protection Bureau for a comment, but we did not receive an immediate response. You might also like Check out the best payment gateways Take your store online with the best ecommerce platforms Yes, Google is a near-monopoly, but selling off Chrome won't make it better



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Link to news story: https://www.techradar.com/pro/google-sues-us-consumer-financial-protection-bur eau-over-order-of-federal-supervision-for-google-pay


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