Google has sued the federal regulator over oversight of its payments division
Google is taking part of the United States government to court.
Specifically, Google is suing the Consumer Financial Protection Bureau, per Reuters. The search engine company has decided to take a consumer organization to court after the agency ordered oversight of Google Payment, the part of the company that handles, well, user payments. According to the CFPB, Google’s payment services carry risks for consumers, such as potential fraud and erroneous transactions.
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One angle to note is that Google actually shut down Google Pay earlier this year. That seems central to Google’s defense of its behavior here. According to the company’s complaint, “an obsolete product cannot pose such a risk.” Therefore, Google does not feel surveillance (which may be similar to what is done by major banks and other financial institutions) is necessary.
Despite this, the CFPB feels that Google’s payment services still pose a risk to customers, per TechCrunch. The CFPB handles approximately 300 consumer complaints. Google may not have done anything wrong, but the CFPB clearly feels that Google did enough to warrant surveillance, and Google is not a fan of that.
It’s also worth noting that this could all go away as soon as Donald Trump takes office again in January, given his public friendship with big tech figures.