Google has filed a lawsuit against the US Consumer Financial Protection Bureau (CFPB) over its decision to establish supervisory authority over Google Payment Corp. The move follows the CFPB’s investigation into consumer complaints about Google Pay’s error resolution and fraud prevention practices.
CFPB’s Focus on Consumer Risks
The CFPB’s supervisory order aims to review Google’s payment practices, citing potential risks to consumers. While the agency clarified that the order does not imply wrongdoing, it seeks to examine Google Pay’s records for oversight.
The scrutiny follows complaints about the platform, which, according to the CFPB, warrant further investigation. Google Pay, however, discontinued its peer-to-peer payment services in the US.
Google Pushes Back
Google is challenging the CFPB‘s authority, arguing the supervisory order is unjustified. The lawsuit claims that the consumer complaints cited by the CFPB are “unsubstantiated.”
A Google spokesperson, Jose Castaneda, said:
“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. We are challenging it in court.”
Broader Implications
This legal clash highlights the growing tension between regulators and tech giants as the financial services landscape evolves. If upheld, the CFPB’s oversight could set a precedent for increased regulatory scrutiny over Big Tech’s financial operations.
The outcome of this lawsuit could shape how agencies regulate payment platforms and potentially impact other tech companies operating in the financial space.