A US lobby group advocating for the interests of Big Tech companies has criticized proposals from the Consumer Financial Protection Bureau (CFPB) aimed at regulating major tech players like Apple and Google, which provide digital payment apps and wallets.
In November, the Bureau announced a proposed rule requiring non-bank financial firms that process over five million transactions annually to comply with the same regulations as large banks and credit unions. This would impact around 17 companies, including notable names like Google, Apple, PayPal, and Block, the operator of CashApp. These companies would be expected to follow relevant laws regarding fund transfers, privacy, and consumer protection.
The Computer & Communications Industry Association (CCIA) expressed concerns in its written response, stating that the current regulatory proposal does not clearly identify specific risks and only mentions the potential for “new risks” arising from “new product offerings” without detailing what those risks are.
Krisztian Katona, CCIA’s vice president of global competition and regulatory policy, remarked that consumer feedback indicates overall satisfaction with payment services, suggesting that there is no significant market failure in the sector. He urged regulators to focus new regulations on specific issues, warning that overly broad or heavy-handed regulations could impede new startups and hinder innovation and economic growth in the United States.