The U.S. CFPB sued Alphabet (GOOGL.US) to enforce regulation.
1min read The Consumer Financial Protection Bureau (CFPB) announced it had ordered federal oversight of Google Payment, an Alphabet (GOOGL.US) subsidiary, and found that the services provided by Google Payment posed risks to consumers. Google Payment has sued the authorities over the decision.The regulator pointed to Google's practices in investigating alleged erroneous transactions, as well as its actions in preventing fraud and unauthorized transactions.The CFPB clarified that its order "does not constitute a finding of wrongdoing by the entity."In response, Google sued the consumer financial protection bureau, claiming the order would subject it to "onerous regulation" and "exceeds the agency's statutory authority."The company previously argued that there was no need to designate the agency unless there was a "likelihood of significant harm to consumers." It also claimed the CFPB relied on "33 carefully selected complaints" involving its peer-to-peer payments, which it had ceased earlier this year.The CFPB said it relied on 267 consumer complaints, and the designation framework did not specify the level of risk required to justify regulation."Moreover, Google's discontinuation of the Google Pay app and P2P payment platform is not a basis for not designating Google for oversight," it added.