Google could be placed under federal supervision by US regulators

The US Consumer Financial Protection Bureau (CFPB) has taken steps to put Alphabet’s Google under formal federal supervision, the Washington Post reported on Thursday.

The move, which could subject Google to “regular inspections and other rigorous monitoring,” the WaPo said, comes after months of discussions by the US Department of Justice (DoJ) to force a breakup of the technology giant over anti-trust violations relating to its search engine monopoly.

After a federal judge in August found the Alphabet subsidiary guilty of spending millions to ensure its stronghold as the world’s top search engine, US regulators have hinted at breaking off parts of the company, such as its Chrome browser or Android OS.

A possible foreshadowing of regulatory battles to come, the Post said Google has “fiercely resisted the idea over months of highly secretive talks,” citing two people familiar with the discussions.

The “United States v. Google” lawsuit was originally filed by the Trump administration back in 2020. Alphabet has said it would appeal the August ruling, thereby dragging the case well into next year, if not longer.

Still, the Trump presidential win could have a sobering effect on the powers granted to the CFPB, which was formed to regulate the banking industry in response to the 2008 global financial crisis.

The CFPB is the principal federal regulator in the US, responsible for administering federal consumer financial law, including the Consumer Financial Protection Act's prohibition on unfair, deceptive, and abusive acts or practices, the agency states.

Under federal supervision status, regulators would have access to Google’s internal records and could force the company to fix any practices the CFPB deems unsound.

In another blow to Big Tech, earlier Thursday, a US federal judge ruled that a lawsuit accusing Meta – the parent company of social platforms Facebook, Instagram, WhatsApp, and Threads – of holding an illegal monopoly over social media can proceed to trial.

Additionally, the FTC announced on Thursday it is preparing to launch a probe into anti-competitive practices at Microsoft's cloud computing business, which includes its Azure cloud platform and Microsoft 365 divisions, according to a report by the Financial Times.

Ironically, Google had filed a complaint letter with the FTC in 2023 (and again in September with EU regulators) against Microsoft Azure, accusing the tech company of unfair practices stifling the cloud market competition.

US antitrust regulators with the DoJ and the Federal Trade Commission (FTC) have also sought legal action against Amazon and Apple for maintaining illegal monopolies in recent years.

Alphabet has not responded to the report as of Thursday afternoon local time.