Apple, Google, Paypal To Face Federal Scrutiny Over Payment Practices
Major technology companies, including Apple Inc. (NASDAQ:AAPL), Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) and PayPal Holdings Inc. (NASDAQ:PYPL), will undergo regular federal examinations concerning their payment systems, marking a significant shift in regulatory oversight.
According to a Barron’s report, the Consumer Financial Protection Bureau (CFPB) announced a proposal on Tuesday that subjects large nonbank consumer payment companies to routine scrutiny. This move aims to ensure these tech giants comply with laws relating to unfair or deceptive practices and data privacy protections.
Until now, these nonbank technology firms have not been subjected to the same level of regular examinations as banks, despite being required to adhere to the same regulations. The CFPB’s proposed rule targets companies that process over 5 million transactions annually, a benchmark that includes Apple, Google, and PayPal, among others.
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