Google announced it was buying Fitbit in 2015 for $2.1 billion and stated it wanted to complete the offer a long time in 2020. Its possible the acquisition will be delayed over worries about the search giants increased access to sensitive data from Fitbits hardware, consisting of users heart rates, their fitness activity, and their sleep patterns.
Antitrust regulators and consumer advocacy groups are increasing their examination of Googles planned acquisition of fitness tracker company Fitbit.
The EU has sent out 60-page questionnaires to Google and Fitbits rivals
Worry from regulators has likewise been matched by consumer advocacy groups. Today, 20 customer groups, from the US, EU, Mexico, Canada, and Brazil, wrote to regulators stating the offer was a “test case” to see if they could effectively rule in information monopolies.
The EU isnt the only party fretted about the acquisition, either. Last month, Australias Competition and Consumer Commission announced its own issues. “Buying Fitbit will enable Google to build a lot more extensive set of user data, further sealing its position and raising barriers to entry to prospective rivals,” stated ACCC Chairman Rod Sims.
The Financial Times reports that EU regulators have actually sent 60-page questionnaires to Google and Fitbits competitors, inquiring to assess how the acquisition will affect the digital health care area; whether it will disadvantage physical fitness tracking apps hosted in Googles Play Store; and how Google might utilize the data to profile users for its search and marketing organization.
EU regulators have set a deadline of July 20th for their next choice relating to the offer. The trading bloc can select to approve the deal, or request for concessions from Google (regarding how Fitbits data is utilized, for example), or open a four-month investigation to fully check out issues. The FT says the level of information in the recent surveys sent to the business competitors recommends a prolonged investigation might be in the works.
Consumer advocacy groups say the acquisition is a “test case” for regulators
Google has actually made some concessions to allay these worries, stating in 2015 that “Fitbit health and wellness information will not be used for Google ads.” In response to the letter from customer groups, the business stated the deal is “about gadgets, not data,” adding that the wearables area is “extremely crowded” and that the acquisition of Fitbit will just increase competition.
” Google might exploit Fitbits exceptionally valuable health and place datasets, and data collection capabilities, to reinforce its already dominant position in digital markets such as online advertising,” stated the group, according to a report from CNET. “Google could also use Fitbits data to develop a commanding position in digital and related health markets, denying competitors of the ability to complete successfully.”
This line of argument is most likely to prevent antitrust regulators from simply blocking the offer, reports Fortune, as Fitbit and Google arent direct competitors, and neither of them holds enough of the wearables market to make the argument that the deal produces a monopoly.
” It would be extraordinarily hard to bring a case”
” It would be extremely hard to bring a case,” antitrust lawyer David Balto, who was policy director at the FTC throughout Microsofts antitrust trials, informed Fortune. “There are no effective oppositions to vertical mergers like this.”
EU regulators have set a deadline of July 20th for their next choice regarding the offer. The trading bloc can select to approve the deal, or ask for concessions from Google (relating to how Fitbits information is used, for example), or open a four-month investigation to fully explore issues. “Buying Fitbit will permit Google to build an even more detailed set of user information, further cementing its position and raising barriers to entry to prospective rivals,” stated ACCC Chairman Rod Sims.
Issues about data gain access to may be more convincing thinking about Googles strong position in online advertising, where it manages 90 percent of the market for some specific tools, like those used by publishers to offer screens advertisements. This is a sensitive location for Google at the moment, as the United States Justice Department is nearing completion of its own antitrust examination against the business relating to alleged abuse of its marketing dominance.
According to information from experts IDC, Fitbit had less than 5 percent of the wearables market in 2019, while Apple, the largest player, had 32 percent. The next 2 most significant companies, Xiaomi and Samsung, have 12 percent and 9 percent market share respectively. None of these companies use Googles software in their wearable gadgets.
According to information from experts IDC, Fitbit had less than 5 percent of the wearables market in 2019, while Apple, the largest player, had 32 percent. None of these firms use Googles software application in their wearable devices.
