05:04 AM EST, 12/10/2024 (MT Newswires) -- (Updates with Google's ( GOOG ) response in the last paragraph.)

Alphabet's (GOOG, GOOGL) Google ( GOOG ) is challenging the US Consumer Financial Protection Bureau's decision to place Google's ( GOOG ) payment processing arm under federal supervision, according to a Reuters report Friday.

"The CFPB has determined that Google Payment has met the legal requirements for supervision," the regulator said. "There is reasonable cause to determine that Google ( GOOG ) has engaged in conduct that poses risks to consumers."

The regulator said in a court filing that Google's ( GOOG ) practices in investigating erroneous transactions and halting fraudulent or unauthorized transactions posed risks to consumers.

The CFPB said its order "does not constitute a finding that the entity has engaged in wrongdoing."

Google ( GOOG ) is suing the agency, arguing that the case stems from Google Pay, an application that is no longer available. "This is a clear case of government overreach involving Google Pay peer-to-peer payments, which never raised risks and is no longer provided in the US, and we are challenging it in court," Jose Castaneda, a Google ( GOOG ) spokesperson, told MT Newswires.