Washington Wants To Watch Over Google & Apple Like Big Banks: Here’s Why
A Washington watchdog will monitor giant tech companies like Google and Apple as big banks. This suggests a greater scrutiny for famous mobile payment companies like Google and Apple.
The Consumer Financial Protection Bureau proposed, through a new rule, that it would want big nonbank financial solution providers to handle a minimum of 5 million transactions every month as other bigger financial lenders follow, as supervised by CFPB.
This ensures strict oversight for famous payment apps such as Apple Pay and Google Pay, used by millions of Americans.
Although the CFPB already has the power to bring enforcement actions against these financial business hands of popular tech companies for violating consumer finance laws, the rule will permit them to keep a watchful eye over these companies and their operations regularly.
CFPB aims to ensure that these giant tech companies comply with the regulations related to the protection against any deceptive and unfair or abusive practices. They want to protect the privacy of the general users who use these popular platforms for their daily transactions.
“would crack down on one avenue for regulatory arbitrage by ensuring large technology firms and other nonbank payments companies are subjected to appropriate oversight,”
CFPB Director Rohit Chopra said last Tuesday in a statement.
The industry CFPB proposal has already set up another conflict with this industry, which is already the target for a major crackdown across Washington.
Federal agencies have brought lawsuits with the allegation that tech companies like Google and Meta are using their market power to illegally stomp out their competitors. Amazon also got sued by the FTC and 17 state attorney generals who alleged that their dominant eCommerce platform, Amazon, is dominating two different markets.
However, major banks are completely supporting this new move taken by the CFPB.
“By bringing supervisory attention to large non-bank payment firms in line with expectations for banks offering similar products, the CFPB is taking a step in the right direction,”
Consumer Bankers Association president and CEO Lindsey Johnson said in a statement.
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