Google’s Fitbit acquisition now deals with a full-on EU examination

Google’s quote to get in the physical fitness tracker market through its acquisition of Fitbit has actually simply struck a significant obstruction. The EU’s Competition Commission revealed on Tuesday that it’s opening a full-blown examination into the purchase.

In a news release, the Commission stated it’s worried Google’s purchase of Fitbit would even more entrench its market position in the online marketing markets by increasing the currently large quantity of information the business might utilize for customization of the advertisements it serves and shows.

The tech huge revealed its $2.1 billion acquisition of Fitbit in November and has actually been actively attempting to prevent such an examination by the EU. In a quote to protect approval, Google guaranteed last month that it would not utilize client health information obtained from Fitbit for advertisement targeting.

The Fitbit offer was implied to accelerate Google’s competitors with Apple, Samsung, Huawei and Xiaomi for gadget sales, broadening beyond phones to use physical fitness trackers and smartwatches. Fitbit formerly controlled the wearables market, however it has actually gradually been surpassed by the Apple Watch and other rivals. By 2020 its position had actually slipped and it was the No. 5 wearables maker internationally, according to IDC, however the business is still seeing good development in deliveries in general.

Google plainly sees the capacity for Fitbit to boost its gadgets portfolio. “We don’t currently make or sell wearable devices like these today,” stated Rick Osterloh, Google’s senior vice president of gadgets and services, in a post on Tuesday. “We believe the combination of Google and Fitbit’s hardware efforts will increase competition in the sector, making the next generation of devices better and more affordable.”

But the business’s pledge to make a lawfully binding dedication not to utilize Fitbit information for advertizing does not appear to have actually encouraged the EU.

European Competition Commissioner Margrethe Vestager stated in a declaration that the increasing appeal of wearable gadgets in Europe will come hand in hand with a rapid development in the quantity of individual information individuals create. “This data provides key insights about the life and the health situation of the users of these devices,” she stated. “Our investigation aims to ensure that control by Google over data collected through wearable devices as a result of the transaction does not distort competition.”

See likewise: Fitbit Charge 4 evaluation: Built-in GPS and much better sleep tracking, plus it’s quite

Google is no complete stranger to handling EU antitrust examinations. In 2017, 2018 and 2019, it was struck with a trio of fines amounting to $9.3 billion for breaking EU competitors guidelines. More is at stake here — the business will be hoping the EU does not try to reverse the acquisition completely.

“We appreciate the opportunity to work with the European Commission on an approach that addresses consumers’ expectations of their wearable devices,” stated Osterloh. “We’re confident that by working closely with Fitbit’s team of experts, and bringing together our experience in AI, software and hardware, we can build compelling devices for people around the world.”

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