Alphabet Inc (NASDAQ:GOOG)’s search giant Google could soon find itself subject to direct federal supervision under a legal framework typically reserved for financial services firms.
According to a report by The Washington Post, the Consumer Financial Protection Bureau (CFPB) wants its monitoring and inspection powers broadened to encompass Google’s financial operations.
Google holds financial and credit card data in its Google Wallet payment application, which, according to the report, has faced hundreds of complaints from customers relating to unauthorized charges.
Google has reportedly been resisting the CFBP’s demands for months, raising the prospect of high-stakes litigation between Google and a federal organisation.
The CFPB reportedly wants its powers extended to other major tech companies including PayPal Inc and Amazon.com Inc (NASDAQ:AMZN).
The CFPB was established in 2010 under the Dodd-Frank Wall Street Reform and Consumer Protection Act in response to the 2008 financial crisis to safeguard consumers against unfair, deceptive, or abusive practices in financial products and services.
It could face difficulty in extending its reach under the incoming Donald Trump presidency given the president-elect’s laissez-faire approach to regulation and government overreach.