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Capital One Faces Possible CFPB Action Over Savings Account Practices

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Capital One has disclosed a potential enforcement action from the Consumer Financial Protection Bureau (CFPB) related to alleged misrepresentations about its savings accounts. The bank received a notice from the CFPB earlier this month, which indicated that the federal agency might proceed with enforcement or litigation.

This development traces back to a lawsuit filed by customers in 2022, who claimed they were not adequately informed of differences in interest rates between two of the bank’s accounts. Capital One had introduced its “360 Performance Savings” account, which featured a higher interest rate compared to the pre-existing “360 Savings” account. Plaintiffs in the lawsuit argued that Capital One failed to communicate these rate differences effectively, resulting in missed earning opportunities for customers.

Capital One, however, has argued it had the contractual right to adjust interest rates at its discretion and that the information about the newer account and its benefits was accessible on its website. In response to the customer lawsuit, Capital One filed a motion to dismiss the case.

The CFPB has not commented on the matter, though the agency’s probe coincides with Capital One’s pending $35.3 billion acquisition of Discover Financial Services, a move that could significantly impact the payments sector. This acquisition is currently under regulatory review, with additional scrutiny from New York Attorney General Letitia James, who is assessing whether the deal could breach state antitrust laws. In July, Capital One pledged $265 billion toward lending, philanthropy, and investments over five years if the acquisition proceeds.

The Wall Street Journal was the first to report on Capital One’s disclosure of the CFPB’s potential enforcement action.

 

Microsoft Accuses Google of Running “Shadow Campaigns” to Influence European Regulators

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Microsoft publicly accused Google of orchestrating “shadow campaigns” in Europe, claiming Google is backing a consortium to sway European regulators against Microsoft. According to a blog post by Microsoft’s attorney Rima Alaily, Google allegedly hired DGA Group, a consulting firm, to form the Open Cloud Coalition, which includes certain European cloud companies.

Alaily asserted that the coalition is an “astroturf group” organized to undermine Microsoft and influence policymakers under the guise of promoting “a fair, competitive, and open cloud services industry.” Alaily linked a flyer for the Open Cloud Coalition, which aims to address competition in cloud services across the UK and EU, with Google reportedly backing it financially and providing resources.

Google, under increasing scrutiny in both Europe and the U.S. — where it faces its second antitrust trial — responded, emphasizing its own concerns over Microsoft’s alleged anticompetitive practices. Google maintains that Microsoft’s licensing agreements for Windows Server create unfair conditions that limit customer choice and stifle innovation, impacting both cybersecurity and market competitiveness. In September, Google filed a complaint with the European Commission, specifically calling out Microsoft’s Windows Server licensing practices. Microsoft counters that its clients benefit by saving up to 36% when using Windows Server on its own cloud infrastructure compared to Amazon’s.

Alaily further alleged that Google has repeatedly aimed to disrupt Microsoft’s standing in both the U.S. and Europe. She highlighted Google’s financial support for the Coalition for Fair Software Licensing, which in 2023 petitioned the U.S. Federal Trade Commission to investigate Microsoft’s cloud licensing practices. Additionally, Alaily claimed that Google offered $500 million to members of the Cloud Infrastructure Services Providers in Europe to oppose a potential antitrust settlement related to Microsoft, which eventually was resolved in July.

The two tech giants, competing for dominance in cloud services, online advertising, and productivity software, continue to clash, with Google’s alleged covert campaigns adding fuel to their intensifying rivalry.

 

Google Seeks to Delay US Judge’s App Store Ruling Amid Security Concerns

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Google has requested a California federal judge to delay the implementation of a recent court order that mandates opening its Google Play store to increased competition. In a filing submitted on Friday night, Google argued that the ruling, set to take effect on November 1, would introduce “serious safety, security, and privacy risks” to the Android ecosystem. The company, a subsidiary of Alphabet, also emphasized that the order could harm its business operations, prompting it to ask for a pause while it appeals the decision.

The ruling, handed down by U.S. District Judge James Donato on October 7, stems from a lawsuit filed by Epic Games, the developer of Fortnite. Epic successfully argued that Google was monopolizing the Android app marketplace, controlling how users download apps and make in-app payments. The court agreed, declaring that Google’s practices unfairly restricted competition and violated antitrust laws.

The injunction specifically requires Google to:

  1. Allow Android users to download apps from competing third-party platforms or stores.
  2. Permit the use of alternative in-app payment methods.
  3. Prohibit Google from paying device manufacturers to pre-install its Play Store.
  4. Stop revenue-sharing agreements with other app distributors.

If Judge Donato denies Google’s request to stay the injunction, the company plans to ask the 9th U.S. Circuit Court of Appeals to halt the order during its appeal process. Google already filed its notice of appeal to the 9th Circuit on Thursday. The appeals court will ultimately decide on the validity of Donato’s ruling as Google seeks to overturn the antitrust verdict.

This legal battle is one of several high-profile antitrust cases aimed at limiting the dominance of tech giants in digital marketplaces. While Epic Games celebrates this as a victory for competition and developers, Google maintains that such changes could undermine the security and privacy protections it has built into its app store and Android ecosystem.