Strictly regulated like Wall Street? Google is under scrutiny by the American "Financial Industry Consumer Association"

Having already been heavily fined by EU regulators, Google may now be under the scrutiny of the U.S. financial industry's consumer protection agency, facing the threat of stricter regulation from the U.S. government. According to a report by The Washington Post on Thursday, November 14, the Consumer Financial Protection Bureau (CFPB) is looking to place Google under direct federal oversight, which could subject Google to strict monitoring similar to that of financial institutions. The report cites sources familiar with the matter stating that Google has refused to accept federal oversight, laying the groundwork for potential legal disputes with the CFPB in the future. The CFPB was established after the global financial crisis in 2008 and has broad powers to protect consumers from unfair, deceptive, or abusive financial practices. According to the CFPB's official website, it is a U.S. government agency dedicated to ensuring that citizens are treated fairly by banks, lenders, and other financial institutions, sending out over 10,000 complaints about financial products and services to multiple companies each week, most of which respond within 15 days. It is currently unclear why the CFPB wants to regulate Google, but with Trump set to take office next year, the future direction of the agency is uncertain. The Washington Post reported on Thursday that the CFPB has already conducted examinations of large banks and credit unions, which have been under the oversight of other state and federal regulators for years. However, CFPB Director Rohit Chopra recently warned that the government does not always apply the same level of scrutiny to tech companies, even when the financial tools they offer are similar to bank accounts and payment systems that have long been closely monitored. Google is an example of the type of company Chopra warned about. The financial services offered by Google include Google Wallet, which digitally stores credit card information and allows users to pay at checkout with their phones. Google also offers an app called Google Pay, which allows customers in the U.S. to transfer money to each other. However, on June 4 of this year, Google announced the closure of Google Pay services in the U.S., with existing users directed to continue using Google Wallet. At that time, it was commented that the discontinuation of the U.S. version of Google Pay was largely because the app had been replaced by Google Wallet. The report mentioned that in recent years, hundreds of customers have complained to the CFPB about Google's services, claiming unauthorized charges on their accounts. For the CFPB to regulate Google, it must determine that the company's activities pose a risk to consumers. Meanwhile, the CFPB is also working to develop a broader set of regulations that would allow the agency to oversee the entire tech industry, not just Google, but also include other major companies like Amazon, Apple, and PayPal's Venmo. Tech giants have opposed the CFPB's regulatory proposals, warning that the CFPB's legal powers pose a threat to independent family-run businesses like mom-and-pop shops. The lobbying group for large tech companies, the Computers & Communication Industry Association (CCIA), stated to the CFPB this year: "Digital payment apps and non-bank entities differ from banking institutions in terms of functionality, features, and capabilities." Therefore, they should not be regulated by the same regulatory agencies as banks and credit unions." After reports emerged that the CFPB might include it under federal government regulation, shares of Google's parent company Alphabet, which fell on Wednesday, accelerated their decline on Thursday, dropping nearly 2.5% to refresh the day's low at midday, likely setting a new closing low since November 5