The Washington Post reported today that the Consumer Financial Protection Bureau (CFPB) is looking to place Google under formal federal supervision, potentially subjecting the company to the same rigorous monitoring practices the government imposes on traditional banks. 

The eleventh-hour play comes despite the CFPB facing a barrage of criticism over its proposed ‘larger participant’ rule targeting digital payment platforms. Last year, Chamber of Progress expressed concerns that the rule would backfire on CFPB regulators by giving Wall Street a leg up over fintech tools, which offer consumers a more accessible alternative to big banks. 

CFPB Director Rohit Chopra has not clarified the scope of the bureau’s concern with Google, setting up a legal battle over the CFPB’s jurisdiction over tech companies. 

“This is a Hail Mary end-run around the CFPB’s proposed ‘larger participant’ rules drafted by Chair Chopra, who carried his Big Tech animus from his old FTC job to the CFPB,” said Chamber of Progress Founder and CEO Adam Kovacevich. “There’s no legal basis for this action, so Chopra is trying to invent one out of thin air – all while the clock ticks on his leadership.”

Formed in the aftermath of the 2008 financial crisis, the CFPB is charged with protecting consumers from unfair, deceptive, or predatory financial practices. Under Chopra’s tenure, the CFPB has introduced a slew of new rules to expand its oversight to technology companies, including last year’s larger participant rule.

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Chamber of Progress (progresschamber.org) is a center-left tech industry policy coalition promoting technology’s progressive future.  We work to ensure that all Americans benefit from technological leaps, and that the tech industry operates responsibly and fairly.  

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