Google Faces New Hurdle from US CFPB: "Under Review Like a Bank"
The U.S. Consumer Financial Protection Bureau (CFPB) is reportedly considering placing Google under regulatory supervision similar to that of major banks, according to the Washington Post (WP) on the 14th (local time).
According to multiple sources, secret talks on this matter have been ongoing for several months, with Google strongly opposing the move.
It is not yet clear which financial products of Google the CFPB is concerned about, but it is presumed to be related to digital payments. Google offers financial services such as Google Wallet, which digitally stores credit cards and allows users to pay with their smartphones at checkout. In recent years, hundreds of customers have filed complaints with the CFPB about unauthorized charges on their accounts related to Google’s services.
WP reported that no final decision appears to have been made yet. With the possibility of Rohit Chopra, the head of the CFPB, being replaced following the return of President Donald Trump to the White House, it is uncertain whether the regulatory stance will continue under the next administration. The U.S. Republican Party has previously questioned the expansion of Chopra’s authority.
WP also predicted that if the CFPB’s actions targeting Google are not implemented before Trump’s return to the White House, they may not come to fruition.
The CFPB’s role is to protect consumers from unfair practices by financial institutions. It has the authority to directly access internal records of supervised companies to assess and require corrections to their business practices. It already conducts such supervision over large banks and others.
According to WP, the CFPB aims to create broad regulations that could oversee not only Google but also other big tech companies such as Amazon, Apple, and PayPal. In response, big tech firms are lobbying, arguing that this represents excessive authority and could harm small and medium-sized businesses. They have also expressed concerns that the government might investigate not only financial products but entire business operations.
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Meanwhile, the CFPB is also conducting an investigation into Meta, which operates Facebook and Instagram.
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