Google wins EU approval to take over fitbit for $2.1 billion
"Google wins fitbit deal after agreeing restrictions on how it will use customers’health related data"
Alphabet’s Google took over European Unions' antitrust approval for its $2.1 billion bid for Fitbit( a company that produces wearable fitness trackers and watches ) after the tech titan agreed to conditions including not using health data from European users for advertising.
When Google announced the acquisition in November 2019, Google hardware chief Rick Osterloh said that the Fitbit purchase was “an opportunity to invest even more in Wear OS as well as introduce Made by Google wearable devices into the market.” But regulators quickly got involved, and in August, they formally began investigating Google’s purchase of Fitbit over data privacy and antitrust concerns.
The deal had triggered criticism from privacy advocates on both sides of the Atlantic, consumer organizations, and Google rivals about the company’s market power and the use of people’s health data in targeted advertising.
Once Fitbit was a leader in the wearable devices market. But in recent years it has lost market share to Apple, Xiaomi, Samsung, and Huawei.
The European Commission said it had agreed on concessions with Google, valid for 10 years with the possibility of another 10-year extension, addressing competition concerns.
For the approval of the deal, Google has agreed to a number of concessions to ease EU concerns. Among the concessions, Google has agreed not to use Fitbit data, including GPS and health data, gathered from any user in the European Economic Area (EEA) for targeted advertising. Also, Google will store Fitbit user's data separately from Google's data used for advertising, and will not use data from Fitbit for GoogleAds. Users can store their health data either in their Google or Fitbit accounts.
The tech giant is said to maintain access to users’ health and fitness data to software applications through Fitbit Web API software, without charging for access.
Google says that it believes this deal will encourage the innovation of wearable devices and enable them to build products that will help people lead healthier lives.
Source: Reuters
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