By Connor Hart


The Consumer Financial Protection Bureau published an order establishing supervisory authority over Google Payment Corp.

The subsidiary of Alphabet-unit Google had already been subject to CFPB's enforcement jurisdiction, the agency said. However, the watchdog determined Friday the platform has met the legal requirements for supervision under its new rules.

Google responded to the order by filing a lawsuit against CFPB in the U.S. District Court for the District of Columbia.

"This is a clear case of government overreach involving Google Pay peer-to-peer payments, which never raised risks and is no longer provid"ed in the U.S.," Google spokesperson José Castañeda said.

The CFPB last month proposed new rules to directly supervise firms that handle more than 5 million payment transactions annually. The rules would encompass 17 firms, including Apple, Google and Paypal.

This move came after large tech companies rapidly became consumer-payment giants thanks to their payment platforms, such as Apple Pay and Google Pay.

The agency said the crackdown ensures large technology firms and other nonbank payment companies are subject to the proper oversight.


Write to Connor Hart at connor.hart@wsj.com


(END) Dow Jones Newswires

12-06-24 1829ET