EU launches full-scale probe of Google-Fitbit merger
The EU has decided to launch a full-scale investigation of Google’s proposed $2.1bn takeover of Fitbit, after an initial probe prompted concerns.
The European Commission, the EU’s executive arm, closed a preliminary review today that determined further investigation of the deal was needed to ensure Google would not use Fitbit’s data to benefit its online ads business.
“The commission is concerned that the proposed transaction would further entrench Google’s market position in the online advertising markets by increasing the already vast amount of data that Google could use for personalisation of the ads it serves and displays,” said the regulator in a statement.
This comes despite Google providing reassurances last month that it would not use data from the wearable technology firm in this way.
The watchdog said it investigation should be complete by 9 December.
Google’s devices chief Rick Osterloh said he was confident the deal would still go ahead, adding: “We appreciate the opportunity to work with the European Commission on an approach that addresses consumers’ expectations of their wearable devices.”
Google announced the $2.1bn bid for Fitbit in November last year, marking a point of consolidation in a crowded market for wearable technology.
Twenty advocacy groups last month petitioned the commission to take a deeper look at the deal. They argued regulators should be concerned about allowing Google to gain access to Fitbit’s data, which tracks personal information about its users such as the number of steps they take and their heart rate.
The competition regulator in Australia also said last month it may have concerns about the deal, and will make a final decision in August.
“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,” said Osterloh in a blog post.
“This deal is about devices, not data.”