Key Takeaways Google sued the CFPB over a recent order to supervise its payment services.
The CFPB cited consumer complaints and fraud allegations stemming from Google Pay operations as grounds for supervision.
Google argues government overreach due to the discontinuation of Google Pay in the US. ✕ Remove Ads
We often hear about Google and other tech giants racking up massive fines or being sued by various governments and regulators. While companies make legal efforts to contest the claims or push back, Google recently took a step we haven’t seen in a while. It sued the US Consumer Financial Protection Bureau (CFPB), challenging a recent order issued to supervise the company’s payments wing.
Related The Google Pay app is shutting down in the US The app will be killed in favor of Google Wallet in June
Google has two main payment services it offers — Google Wallet and Google Pay. The latter used a peer-to-peer system for payments and was discontinued in the US earlier this year. However, it remains operational in other geos like India, where Wallet isn’t. Reuters reports the CFPB announced that it will supervise Google Payment Corp. since consumers were at risk (via Engadget).
In its announcement, the Bureau cited around 300 consumer complaints and allegations of fraud and unauthorized transactions. Google was quick to rubbish the issued order stating the service has been discontinued. However, the Bureau also said Google did not investigate these complaints or share investigative findings in sufficient detail, so the law could supervise the Google Payment Corp. even after suspension of said services.
In subsequent legal action, Google challenged the CFPB’s actions, saying it is
Google is suing the US government for overreach
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