Google challenges US order for payment service supervision
Google disputes a federal oversight order, calling it unnecessary for a discontinued service.
The United States Consumer Financial Protection Bureau (CFPB) announced on Friday it will subject Google Payment Corp., Alphabet‘s payment arm, to federal oversight, citing potential risks to consumers. The move follows complaints involving fraud and unauthorised transactions, although the agency stopped short of alleging direct misconduct.
Google has filed a lawsuit challenging the order, arguing that the service in question is no longer active and poses no risk. The CFPB, however, maintains its authority to regulate even discontinued services if they posed prior risks.
The announcement comes as the Biden administration intensifies regulation of tech-driven financial services, seeking parity with traditional banks. Last month, the CFPB finalised rules extending banking supervision to tech firms offering payment and digital wallet services, a move opposed by Republican lawmakers.
With Biden leaving office and President-elect Trump set to return, the decision may face political challenges. Google’s case highlights the broader conflict between Silicon Valley and federal regulators over financial innovation.
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