Under the leadership of Rohit Chopra, the Consumer Financial Protection Bureau (CFPB) is moving to place Google under formal federal supervision, as reported by The Washington Post. This could result in Google undergoing regular inspections and scrutiny similar to the monitoring that major banks face. However, the tech giant has been resistant to the idea throughout months of secretive discussions, according to sources familiar with the talks.
Founded after the 2008 financial crisis, the CFPB aims to create more effective regulations, enforce rules consistently, and empower consumers in financial markets. While the agency currently conducts inspections of large banks and credit unions, Chopra has expressed concern over the lack of similar oversight for technology companies, particularly as many of their financial tools, such as bank accounts and payment systems, resemble traditional financial products.
The Post notes that the full extent of the CFPB’s concerns is unclear, and the order to oversee Google may not yet be final. The future of Chopra’s leadership also remains uncertain, with speculation that President Trump could replace him soon after taking office. Experts like Joann Needleman of Clark Hill PLC anticipate that the CFPB under the new administration may shift its focus away from creating extensive regulations, instead adopting a more traditional approach like the Federal Trade Commission’s, potentially weakening or eliminating rules introduced under Chopra.
Chopra, who took over as CFPB director in 2021, has a history of pushing for more stringent business regulations, having previously served as a commissioner at the Federal Trade Commission. His nomination was met with partisan division, with progressives supporting his aggressive stance against big businesses, while conservatives feared the bureau might become overly regulatory.
