Google filed a lawsuit on Friday against the U.S. Consumer Financial Protection Bureau (CFPB), challenging the agency’s decision to place its payment division under federal supervision. The company argues that the CFPB’s action is an example of "government overreach" concerning Google Pay's peer-to-peer payment service, which is no longer available in the United States, according to Reuters and CNN.
In a statement, Google spokesperson José Castañeda on Friday (Washington time) criticized the CFPB’s move, asserting that the service never posed any consumer risks. "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 U.S.," Castañeda said. "We are challenging it in court."
The lawsuit, filed in U.S. District Court in Washington, D.C., claims the CFPB's supervision would impose “burdensome regulation” based on a “small number of unsubstantiated user complaints.” Google argues that the decision to regulate the defunct product is legally flawed, stating that a product that is no longer offered cannot pose any risks to consumers.
The dispute stems from the CFPB’s decision to place Google Payment Corp. under its supervisory authority, following customer complaints about issues such as improper investigations into erroneous money transfers. The CFPB’s oversight would enable the agency to conduct on-site examinations and request confidential documents from Google as part of its compliance with consumer financial laws.
The legal battle comes amid increased scrutiny of big tech companies like Google, Apple, and Samsung, which have expanded into financial services. In 2022, the CFPB began investigating nonbank financial institutions that could pose risks to consumers, with Director Rohit Chopra emphasizing the agency’s role in swiftly addressing potential consumer harm.
Despite Google’s legal challenge, the CFPB has insisted that its supervision of Google Pay’s operations remains necessary to ensure consumer protection. "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," said Chopra in 2022.
The lawsuit adds another layer of tension between Silicon Valley giants and regulatory authorities as they navigate the rapidly expanding intersection of technology and finance.
Bd-pratidin English/ Jisan
