EU clears Google’s $2.1B takeover of Fitbit, with conditions

EU clears Google's $2.1B takeover of Fitbit, with conditions

LONDON – The European Union on Thursday authorized Google’s plan to purchase health gadget maker Fitbit for $2.1 billion after it promised to limit person knowledge and guarantee Android telephones work with different wearable units for no less than 10 years.

Human rights and client teams, which had referred to as on authorities to dam the deal over privateness and antitrust considerations, had been sad with the choice. The deal additionally attracted scrutiny in Australia, the place competitors regulators are mulling an analogous provide from Google.

The EU was initially nervous the deal would increase Google’s “knowledge benefit” and lift obstacles for rivals within the on-line advert trade.

The EU’s competitors commissioner, Margrethe Vestager, mentioned she cleared the deal as a result of Google’s commitments “will make sure that the marketplace for wearables and the nascent digital well being area will stay open and aggressive.”

Google mentioned it “labored constructively” with EU regulators to resolve their considerations, together with the set of legally binding commitments that the European Fee accepted.

“These construct on assurances we’ve made for the reason that starting that we’re dedicated to defending Fitbit customers’ privateness and can proceed to spend money on and assist producers and builders,” the corporate mentioned in a press release.

Google made the commitments after the bloc’s competitors watchdog launched an investigation of the deal this yr.

The Silicon Valley tech big’s commitments included a promise to silo off Fitbit person knowledge from different Google knowledge and never use it for promoting functions. The corporate additionally pledged to make sure telephones working its Android working system can proceed to work with third-party health trackers and agreed to not use warnings and error messages to worsen the person experiences of different health watches.

Google additionally vowed to proceed giving outdoors well being and health apps entry to Fitbit knowledge.

The EU dismissed considerations the deal would let Google dominate the continent’s digital healthcare sector as a result of the market continues to be rising and has many gamers. However Privateness Worldwide mentioned the EU ought to have carried out a more in-depth examination, saying there’s an opportunity Google may find yourself dominating health-related markets in the event that they’re ignored by regulators.

“Nothing appears to forestall Google from additional enriching their large knowledge troves with huge portions of delicate well being knowledge and doubtlessly exploiting our knowledge in ways in which transcend digital promoting markets,” the London-based group mentioned.

European client group BEUC echoed the considerations.

“There’s a critical danger that Google will exploit Fitbit customers’ knowledge, together with delicate well being knowledge, in a number of markets,” mentioned Director Common Monique Goyens.

The deal’s approval got here days after the EU unveiled proposals for a wide-ranging overhaul of digital rules aimed partially at stopping huge tech firms from dominating markets.


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