Google has filed a lawsuit against the Consumer Financial Protection Bureau (CFPB), challenging the agency’s decision to place Google’s payment division under federal supervision.
The case, submitted to a U.S. district court in Washington, D.C., stems from a CFPB order asserting supervisory authority over Google Payment Corp., citing consumer complaints about its now-defunct peer-to-peer payment product in the United States.
In its lawsuit, Google argued that the CFPB’s decision imposes an undue regulatory burden based on a “small number of unsubstantiated user complaints.” The company claimed the agency erred in labeling the product, which is no longer available, as a potential consumer risk.
Google spokesperson José Castañeda called the move “government overreach,” asserting that Google Pay’s peer-to-peer services never posed risks.
The CFPB, however, maintains its authority over Google’s payment division, stating that the discontinuation of a product does not exempt the company from regulatory oversight.
The agency emphasized that supervision enables it to proactively examine financial companies, addressing potential consumer risks before harm escalates. Google’s lawsuit claims such supervision could lead to on-site inspections and demands for sensitive information.
The conflict highlights growing tensions as tech giants like Google, Apple, and Samsung expand into financial services, drawing closer scrutiny from federal regulators.
This legal battle could set a significant precedent for regulatory oversight in the tech industry.
