US regulator could impose bank-like state supervision regime on Google

Among its vast portfolio of products and services, Google offers Wallet. Google Wallet’s functionality has expanded over time, but its main goal has always been to make digital payments simple. Perhaps due to this, a recent report suggests that the US CFPB regulator is considering imposing state supervision regime on Google. This might represent a new obstacle beyond the lawsuits filed by the DOJ.
The type of supervision that the agency reportedly wants to impose on Google normally applies to banking institutions. It implies that organizations must follow a set of strict rules and protocols that go beyond the regulations applied to tech companies. The CFPB (Consumer Financial Protection Bureau) was created in 2008 to protect consumers from potentially harmful practices in the face of the financial crisis.
A US regulator wants to impose a government supervision regime on Google
The CFPB’s specific motivation for imposing the government supervision regime on the Mountain View giant remains unknown. However, considering the agency’s nature, it is likely related to issues with Google Wallet. In fact, according to The Washington Post, hundreds of customers have filed complaints against Wallet with the CFPB for alleged unauthorized charges.
Until now, the agency has focused solely on banking institutions. However, CFPB Director Rohit Chopra has long wanted to change this. Chopra is seeking to expand the scope of CFPB oversight to fintech-based developments (which includes digital payment providers). The tech industry responded with the creation of the trade group Chamber of Progress, of which Google is a member. The group focuses on defending its members against antitrust and content moderation-related lawsuits, among others.
“There’s no legal basis for this action, so Chopra is trying to invent one out of thin air — all while the clock ticks on his leadership,” said Adam Kovacevich, CEO of Chamber of Progress, about the alleged intentions of the CFPB director.
The new administration in the White House could radically change things
That said, there is the possibility that things will change quite a bit in the coming months. Donald Trump’s administration might appoint one of its preferred candidates as the agency’s director. In fact, the Republican faction has always been hesitant about expanding the CFPB’s reach. So, unless they implement the measure against Google before Trump takes office, the agency’s reported intentions could soon fade away.