According to reports, the US watchdog for consumer finance announced it was ordering federal supervision of Google Payment Corp., the internet giant's payment arm.

The Consumer Financial Protection Bureau made the announcement, stating that it had concluded that Google Payment's services presented a risk to customers.

In the last weeks of President Joe Biden's administration, the regulator's action and the lawsuit that followed signaled a federal battle with a Silicon Valley giant. When President-elect Donald Trump takes office again in January, the regulator's action might be undone.

Under Biden, the CFPB has been paying closer attention to the expanding financial services industry that is offered by Silicon Valley companies instead of conventional banks.

Nearly 300 consumer complaints were reported to the agency, many of which involved allegations of fraud, scams, and unauthorized transactions. It stated that it did amount to a conclusion that the business had committed misconduct.

However, according to the CFPB order, consumer complaints showed that Google Payment neglected to investigate concerns regarding incorrect transfers, among other possible infractions, and that the law permitted oversight even in cases where Google had stopped providing the disputed services.

Google Payment Corp. claimed in a lawsuit following the CFPB pronouncement that the agency had relied on a few unsupported complaints about a product it no longer sold.

The CFPB approved new rules last month that require internet businesses that provide digital wallets and payment services to be subject to the same oversight that banks do.

In the last weeks of Biden's administration, the agency has continued to rule despite Republican lawmakers' requests to stop.