Google Escapes Payment Oversight by Biden Administration, According to Google Representative
Here's the rewritten article:
Google Ditches Supervision Row with CFPB, Citing Irrelevance
It looks like Google Payment Corp has managed to escape federal supervision by the Consumer Financial Protection Bureau (CFPB), following a shift in stance from the regulatory body. This move marks a turnaround from a previous decision made under the Biden administration to monitor Google’s nonbank financial operations.
In December, the CFPB announced that it would exercise authority over Google's payment wing, but the tech giant reportedly threatened legal action against the decision. Now, with the CFPB backing down, Google has chosen to drop its lawsuit, according to an email statement from a company spokesperson.
Stating that supervising a non-operational product with no demonstrable risks made little sense, the CFPB apparently withdrew its efforts due to the unwarranted use of resources. In a memo on May 7, acting CFPB director Russell Vought acknowledged this, citing Bloomberg News as the source of the information. The CFPB hasn't commented further on the situation yet.
When the CFPB made the initial move to oversee Google Payment Corp, it was responding to mounting consumer complaints about unauthorized charges, and as part of broader efforts by the Biden administration to control tech firms offering financial services. However, upon review, the CFPB decided that the compliance burden and regulatory intervention were unwarranted given the specific circumstances.
Google had ceased operating the U.S. version of its peer-to-peer Google Pay product back in June 2024 — long before the bureau issued its decision to supervise the platform. A Google spokesperson explained that the withdrawal made sense as the product never posed a threat to consumers.
To sum up, the CFPB’s decision to withdraw supervision is based on the Google Pay product no longer functioning in the U.S., the lack of evidence of significant consumer risks, and the inappropriateness of using supervisory resources and regulatory powers in this situation. This change in course signifies a shift in the CFPB’s stance towards the financial arms of major tech companies.
[1] CFPB determines Google Payment product no longer posed risks to consumers.
[2] CFPB acknowledges burden and regulatory intervention not justified.
[3] Google welcomes the removal of supervision.
[4] CFPB's reversal signals policy shift towards tech companies offering financial services.
- The Consumer Financial Protection Bureau (CFPB) has recognized that Google's financial operations, specifically with regard to Google Payment, no longer pose significant risks to consumers.
- The CFPB's decision to terminate supervision over Google Payment signifies a shift in policy towards tech companies that offer financial services, indicating a recognition that the compliance burden and regulatory intervention may not be justified in certain circumstances.
