Last year, Google announced its intent to acquire Fitbit, an American technology company that focuses on wearable technology, saying the move was about “devices, not data.” Even with Google making these assurances, however, the European Commission this week revealed plans to launch an investigation into the acquisition, citing concerns over the search giant’s access to health data and its position in online advertising.
The investigation is expected to last 90 days, which means the Google-Fitbit deal can’t close until the end of this year at the earliest. Google said it hopes to build “compelling devices” once the deal is done, so the investigation will certainly put a damper on the search giant’s future plans — at least for now.
In a press release, the European Commission said data that’s collected via wrist-worn devices could provide Google with a major advantage in online advertising markets. “By increasing the data advantage of Google in the personalization of the ads it serves via its search engine and displays on other internet pages, it would be more difficult for rivals to match Google’s online advertising services,” the commission said.
Google, meanwhile, claims the acquisition is about providing customers with more choice. In a blog post on Tuesday, Google’s Rick Osterloh said that Google’s AI and Fitbit’s hardware expertise will “increase competition in the sector” and result in better wearables that are more affordable. Osterloh went on to say that Fitbit users have the choice to review, move, or delete their data, which will be siloed away from its ad tracking business. “We’ve been clear from the beginning that we will not use Fitbit health and wellness data for Google ads,” Osterloh said. “We recently offered to make a legally binding commitment to the European Commission regarding our use of Fitbit data.”
Despite Google’s commitments, the European Commission still believes Google will use data as a result of the transaction, giving the search giant an unfair advantage for advertising purposes. Google doesn’t currently make its own wearable devices but instead develops the Android-based Wear OS platform which is used in smartwatches made by the Fossil Group, Xiaomi, OPPO, Mobvoi, and other companies.
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