Topline
Google filed a lawsuit Friday against the Consumer Financial Protection Bureau after the agency issued an order placing the tech giant under federal supervision due to concerns about Google Pay, according to multiple outlets, arguing the bureau’s order was based on a “small number of unsubstantiated user complaints.”
Google filed the suit Friday. (Photo by Marvin RECINOS / AFP) (Photo by MARVIN RECINOS/AFP via Getty … [+]
Key Facts
The bureau announced the order Friday and said Google Payment Corp. met the legal requirements for government supervision, meaning the bureau will actively monitor Google and communicate with the company to assess its compliance with consumer protection laws—putting it under the same level of federal scrutiny typically reserved for banks.
Google sued the bureau, alleging its order was based on a “small number of unsubstantiated user complaints” and arguing the supervision would be a “burdensome form of regulation.”
The lawsuit was filed in the federal district court in Washington, D.C., and argued that since the app at the center of the bureau’s order no longer exists, there is no risk to consumers, CNN reported.
Google spokesperson José Castañeda told Forbes the order “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., and we are challenging it in court.”
The order does not mean Google has committed wrongdoing.
The CFPB did not immediately respond to Forbes’ request for comment.
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Key Background
The bureau was created in 2011 and is designed to ensure companies are complying with consumer financial protection laws. Its order against Google gives it the ability to conduct on-site reviews and review private communications at the company, which axed its standalone U.S. version of the Google Pay app in June. The tech giant said it removed the app to simplify its payment options. The order marks the latest instance of Google facing regulatory pressure from the federal government, as a federal judge ruled in August it illegally acted as a search monopoly. It now faces a possible breakup of its company that could result in it having to sell off its Chrome web browser.
Further Reading
Justice Department Will Request Judge Order Google To Sell Chrome In Antitrust Case, Report Says (Forbes)
CFPB looks to place Google under federal supervision, setting up clash (Washington Post)
