Already heavily fined by the European Union regulatory agencies, Google may now be targeted by the American financial consumer protection institutions, facing the threat of stricter regulation by the U.S. government.

According to The Washington Post's report on Thursday, November 14, the Consumer Financial Protection Bureau (CFPB) plans to place Google under direct federal government supervision, which may subject Google to similar strict monitoring as financial institutions. The report cited insider information stating that Google has refused to accept federal oversight, laying the groundwork for potential legal disputes with CFPB in the future.

Established after the global financial crisis in 2008, the CFPB has extensive powers to protect consumers from unfair, deceptive, or exploitative financial practices. The CFPB's official website states that it is a U.S. government agency dedicated to ensuring fair treatment for citizens by banks, loan companies, and other financial institutions. The agency receives over 0.01 million complaints about financial products and services from multiple companies weekly, with most companies responding within 15 days.

It is currently unclear why the CFPB wants to regulate Google, but with Trump taking office next year, the agency's future direction also faces uncertainty.

The Washington Post reported on Thursday that the CFPB has conducted inspections on major banks and credit unions, which have been regulated by other state and federal regulatory agencies for many years. However, CFPB Director Rohit Chopra recently warned that the government does not always impose the same level of oversight on tech companies, even if they offer financial tools similar to traditional banking accounts and payment systems.

Google is an example of what Chopra has warned about. Google's financial services include Google Wallet, which digitally stores credit card information and allows users to make payments at the checkout using their phones. Google also offers an app called Google Pay, allowing U.S. customers to transfer money to each other. However, on June 4th this year, Google announced the closure of Google Pay in the U.S., advising existing users to switch to Google Wallet for continued use. It was speculated that discontinuing the U.S. version of Google Pay was due to it being largely replaced by Google Wallet.

In recent years, hundreds of customers have complained to the CFPB about Google's services, claiming unauthorized charges on their accounts. For CFPB to regulate Google, it must determine that the company's activities pose a risk to consumers.

At the same time, CFPB is also working to establish a set of more widely applicable regulations, enabling the regulatory body to oversee the entire technology industry, not just Google, but also encompassing other major companies like amazon, apple, and Venmo under PayPal.

Tech giants have all opposed CFPB's regulatory proposals, warning that CFPB's legal power poses a threat to small independent family-operated stores. The lobbying group Computers & Communication Industry Association (CCIA) of major tech companies once told CFPB this year: "Digital payment apps and non-banking entities differ in functionality, features, and capabilities from banking institutions, so they should not be subject to the same regulatory oversight as banks and credit unions."

After reports that CFPB may include it in federal government regulation, Google's parent company Alphabet saw its stock price fall sharply on Thursday following a Wednesday decline, dropping nearly 2.5% at midday to potentially set a new low since the close of November 5th.