The U.S. Consumer Financial Protection Bureau (CFPB) has reversed its decision to place Google Payment Corp, a subsidiary of Alphabet Inc., under federal supervision, prompting Google to drop its legal challenge against the agency.
The regulatory shift marks a rollback of a Biden-era move to increase oversight of nonbank financial platforms. The CFPB had announced in December 2024 that it would begin supervising Google Payment, citing potential risks to consumers.
Google immediately challenged the decision in court, arguing the action was unjustified and based on outdated complaints regarding a discontinued product.
On Thursday, a Google spokesperson confirmed the company would no longer pursue the lawsuit following the CFPB’s withdrawal. Acting CFPB Director Russell Vought, appointed by former President Donald Trump, stated in a memo dated May 7 that the bureau’s involvement would have been “an unwarranted use of the Bureau’s powers and resources,” according to Bloomberg News.
Google had retired its U.S.-based peer-to-peer (P2P) Google Pay service in June 2024 for business reasons, months before the CFPB’s designation. The company maintained that the product in question was neither risky nor currently available.
“It didn’t make sense for the CFPB to supervise a product that never posed any risks and is no longer available in the U.S.,” said Google spokesperson José Castañeda. “We appreciate their common-sense decision to drop this issue.”
The CFPB has not issued a formal comment in response to the development. Under the Biden administration, the agency had intensified scrutiny of fintech platforms, arguing that their growing role in consumer finance warranted closer oversight. This reversal could signal a shift in regulatory priorities under new leadership.
