May 8 (Reuters) - The U.S. Consumer Financial Protection

Bureau has withdrawn its efforts to supervise Alphabet's

Google Payment Corp, a spokesperson for Google said on

Thursday, marking a reversal of a Biden-era decision to monitor

the nonbank financial platform.

The watchdog announced in December that it was ordering

federal supervision of Alphabet's payment arm, a decision the

company immediately said it was challenging in court.

Google will now drop its lawsuit since the CFPB has

discontinued its supervision efforts, a spokesperson for the

company said in an emailed statement.

In December, the CFPB had announced the step, saying it had

determined services offered by Google Payment had posed a risk

to consumers.

The supervision of Google Payment would be "an unwarranted

use of the Bureau's powers and resources," acting CFPB director

Russell Vought, who was appointed by President Donald Trump,

said in a May 7 memo, according to Bloomberg News, which first

reported the developments.

The CFPB did not immediately respond to a Reuters request

for comment.

Under Biden, the CFPB had been more closely scrutinizing the

growing sector of financial services provided by Silicon Valley

rather than traditional banks.

In the lawsuit filed after the CFPB's December announcement,

Google Payment had said the regulator had relied on a small

number of unsubstantiated complaints concerning a product it no

longer offered.

"It didn't make sense for the CFPB to supervise a product

that never posed any risks and is no longer available in the

U.S.," Google spokesperson José Castañeda said.

"We appreciate their common-sense decision to drop this

issue."

The company had retired the U.S. version of the Google Pay

"P2P" product in June 2024 for business reasons, long before the

CFPB issued its designation, according to the spokesperson.