Google Sues Financial Bureau Over Payment Platform Dispute
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Google has filed a lawsuit against the Consumer Financial Protection Bureau (CFPB), saying the agency is going beyond its power. Google stated that the bureau should not control its payment platform.
The company explained that the bureau is focusing on a peer-to-peer payment feature that is no longer in use in the United States. Google said the feature was stopped and cannot hurt anyone now. This shows growing disagreements between tech companies and the government about digital payments, according to reports.
The Bureau Has Revealed Plans to Regulate Nonbank Firms
CFPB announced in 2022 that it would supervise nonbank financial companies. The agency said it took this step because customers shared worries about risks from these companies. The CFPB explained that Google Payment Corp fits the rules for supervision.
According to the update, Google does not agree with the CFPB claims. The company said the bureau’s action is not needed since the product in question is no longer active. Google added that the CFPB’s order does not show any claims of wrongdoing against Google Payment Corp.
The bureau said its goal is to regulate digital payment services and protect consumers. Last month, the CFPB included nonbank companies like those offering payment wallets or funds transfers in its oversight. The agency stated that Google’s payment services still fall under its rules, even after recent changes.
Google Shuts Down Its Google Pay App In The United States
Google shared that it stopped the Google Pay app for users in the United States on June 4 and switched to Google Wallet. The company said all U.S. users moved to the new app without any issues. Google explained that while Google Pay is no longer in the U.S., it still works in places like India and can be used for shopping online and paying in stores.
Experts shared different ideas about Google’s lawsuit. Some said it strongly pushes back against the growing power of the Consumer Financial Protection Bureau, while others believe it shows how hard it is to manage digital payments.
The case has started a discussion on how to protect users while also helping new ideas grow. The Consumer Financial Protection Bureau said it will keep watching the situation. This case might change the way digital payment apps are supervised in the future.
