Google announced its plans to acquire Fitbit for $2.1 billion back in November. As of this writing, the deal has yet to go through, courtesy of all the usual regulatory scrutiny that occurs any time one large company buys another. EU regulators are often a key hurdle for these sorts of deals, and this time it may be no different.
Citing “people familiar with the matter,” Reuters notes that Google may be facing down some scrutiny in the form of an EU antitrust investigation if it doesn’t make some concessions. The heart of the concern here is a matter of health privacy. Fitbit — like many other wearable companies — collects a tremendous amount of health information from wearers.
Google, of course, is a company tremendously invested in data and advertising. Critics of the deal have suggested that purchasing Fitbit would provide yet another rich vein of data for Google to mine. As such, the deal could hinge on the promise that Google will never use health data to sell ads.
The stipulation is in keeping with a promise the company made when the acquisition was first announced, with the company’s head of hardware Rick Osterloh promising, “[P]rivacy and security are paramount. When you use our products, you’re trusting Google with your information. We understand this is a big responsibility and we work hard to protect your information, put you in control and give you transparency about your data.”
In a follow-up to this week’s reporting, the company noted that it believes the acquisition would increase competition. While Fitbit has a sizable footprint, Apple, Xiaomi and Huawei currently dominate the category, due in part to Fitbit’s late start in the smartwatch category. Google’s efforts to make inroads through Wear OS have largely come up short, though the company did also purchase a chunk of smartwatch tech from Fossil last January.
A spokesperson also attempted to put to rest potential regulatory fears, stating, “Throughout this process we have been clear about our commitment not to use Fitbit health and wellness data for Google ads and our responsibility to provide people with choice and control with their data.”
Regulators are set to decide on the deal by July 20. Google reportedly has until July 13 to present its concessions.
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July 11, 2020 at 03:51AM
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