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March 13, 2025

Google is suing the US government for overreach Chris Mendez | usagoldmines.com

Key Takeaways

  • Google sued the CFPB over a latest order to oversee its fee companies.
  • The CFPB cited client complaints and fraud allegations stemming from Google Pay operations as grounds for supervision.
  • Google argues authorities overreach because of the discontinuation of Google Pay within the US.




We frequently hear about Google and different tech giants racking up large fines or being sued by numerous governments and regulators. Whereas corporations make authorized efforts to contest the claims or push again, Google just lately took a step we’ve not seen shortly. It sued the US Client Monetary Safety Bureau (CFPB), difficult a latest order issued to oversee the corporate’s funds wing.

Associated
The Google Pay app is shutting down in the US

The app shall be killed in favor of Google Pockets in June


Google has two predominant fee companies it gives — Google Pockets and Google Pay. The latter used a peer-to-peer system for funds and was discontinued in the US earlier this yr. Nevertheless, it stays operational in different geos like India, the place Pockets is not. Reuters reports the CFPB introduced that it’s going to supervise Google Cost Corp. since shoppers have been in danger (by way of Engadget).

In its announcement, the Bureau cited round 300 client complaints and allegations of fraud and unauthorized transactions. Google was fast to garbage the issued order stating the service has been discontinued. Nevertheless, the Bureau additionally stated Google didn’t examine these complaints or share investigative findings in adequate element, so the legislation might supervise the Google Cost Corp. even after suspension of stated companies.


In subsequent authorized motion, Google challenged the CFPB’s actions, saying it’s “incapable of posing such threat” to shoppers since Google Pay was discontinued, calling it “a matter of widespread sense”. The CFPB maintains the discontinuation of Google Pay is not grounds sufficient to chorus from supervising the corporate’s enterprise.


Will Google win this authorized tussle?

As the federal government adjustments

A Google sign on a round awning in a city setting.

Chances are you’ll not have heard of the CFPB within the tech house as a result of it usually oversees the operation of typical monetary establishments like banks, credit score unions, and mortgage operations. Nevertheless, Reuters claims the Bureau has been more and more concerned about fee options from huge tech corporations beneath the Biden administration. With the administration altering in a matter of days, Google might cling onto the hope the Bureau will shift its consideration elsewhere.


Whereas the CFPB didn’t touch upon Google’s go well with, a spokesperson for the corporate advised TechCrunch “It is a clear case of presidency overreach involving Google Pay peer-to-peer funds, which by no means raised dangers and are now not offered within the US”.

 

This articles is written by : Nermeen Nabil Khear Abdelmalak

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