Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

U.S., EU advocacy groups warn against Google's purchase of Fitbit

Published 02/07/2020, 04:20
Updated 02/07/2020, 04:25
© Reuters. FILE PHOTO: Fitbit Blaze watch is seen in front of a displayed Google logo in this illustration

© Reuters. FILE PHOTO: Fitbit Blaze watch is seen in front of a displayed Google logo in this illustration

WASHINGTON (Reuters) - Twenty advocacy groups from the United States, Europe, Latin America and elsewhere signed a statement Wednesday urging regulators to be wary of Google's $2.1 billion bid for fitness tracker company Fitbit Inc (N:FIT) because of privacy and competition concerns.

The 20 organizations - which include the U.S.-based Public Citizen, Access Now from Europe and the Brazilian Institute of Consumer Defense - argued that the deal would expand the already considerable clout in digital markets of Alphabet Inc's (O:GOOGL) Google.

Acquiring Fitbit would give Google such intimate information about users as how many steps they take daily, the quality of their sleep and their heart rates.

"Past experience shows that regulators must be very wary of any promises made by merging parties about restricting the use of the acquisition target’s data. Regulators must assume that Google will in practice utilize the entirety of Fitbit’s currently independent unique, highly sensitive data set in combination with its own," the groups said.

Australian and Canadian groups were among the signatories.

A Google spokeswoman said the tech wearables space was crowded.

"This deal is about devices, not data," she said. "We believe the combination of Google's and Fitbit's hardware efforts will increase competition in the sector."

Google announced the deal in November to take on competitors in the crowded market for fitness trackers and smart watches. Fitbit's market share has been threatened by deep-pocketed companies like Apple Inc (O:AAPL) and Samsung Electronics Co Ltd (KS:005930).

Australia's competition authority said this month that it may have concerns about the deal and would make a final decision in August.

EU antitrust regulators will decide by July 20 whether to clear the deal with or without concessions or open a longer investigation.

© Reuters. FILE PHOTO: Fitbit Blaze watch is seen in front of a displayed Google logo in this illustration

In Washington, Google is under antitrust investigation by the Justice Department, a congressional committee and dozens of states for allegedly using its massive market power to harm smaller competitors.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.