The Consumer Financial Protection Bureau (CFPB) has initiated steps to bring Google under its regulatory umbrella, potentially setting a major precedent for how the government monitors tech giants. This move could establish new standards for federal oversight of companies offering financial products, with Google facing increased scrutiny and regular inspections if the process moves forward.
Google’s Ongoing Battle with the CFPB
Reports from The Washington Post suggest that Google has been fighting the CFPB’s efforts for months, resisting the idea of federal oversight. While the CFPB has not disclosed the full scope of its investigation, its focus appears to be on Google’s financial services, including products like Google Pay. Should this move succeed, Google would become the subject of ongoing supervision under an agency that traditionally regulates banks and credit unions.
Expanding the CFPB’s Reach
Created after the 2008 financial crisis, the CFPB’s primary mission is to protect consumers from unfair or deceptive financial practices. In recent years, however, Director Rohit Chopra has advocated for expanding the bureau’s reach to include tech companies that provide financial services. The bureau launched an investigation into payment systems used by companies like Amazon, Apple, Facebook, Google, and PayPal in 2021, signaling its increasing focus on financial technology (fintech).
Wider Implications for Big Tech
This move could have far-reaching consequences for big tech. If successful, it would set a regulatory precedent, potentially subjecting other tech companies to similar oversight. Increased government supervision could lead to stricter consumer protection measures, and possibly reshape how financial services are integrated into tech platforms.
Political Factors at Play
However, the future of the CFPB’s actions against Google may depend on the political landscape. With Donald Trump potentially returning to office in 2025, changes in leadership could significantly affect the CFPB’s role and approach to overseeing tech companies like Google.