European Commission approves Google's acquisition of Fitbit, subject to 'full compliance with commitment'



Regarding the acquisition of wearable device maker

Fitbit by Google, 'By combining Fitbit's health data and data collected by Google, it will be possible to exploit consumers in medical care and health insurance, and it will be great for privacy. The European Commission, which claimed to have an impact, has announced that it will conditionally allow the acquisition of Fitbit.

Mergers: Commission clears acquisition of Fitbit by Google
https://ec.europa.eu/commission/presscorner/detail/en/ip_20_2484

EU approves Google's acquisition of Fitbit, subject to conditions
https://www.cnbc.com/2020/12/17/googles-2point1-billion-acquisition-of-fitbit-approved-by-eu.html

On November 1, 2020, Google officially announced the acquisition of Fitbit. The purchase price was approximately 2.1 billion dollars (230 billion yen).

Google parent company acquires Fitbit, a major wearable device --GIGAZINE


by Mike Mozart

It was the European Commission that waited for Google to buy Fitbit. 'Google's business practices over the last decade suggest, to be precise,'monetize global data',' the European Commission said, giving Google the ability to collect data from Fitbit. In September 2020, he pointed out that there would be a great risk of increasing monopoly power and exploiting consumers.

The European Commission said it was particularly concerned about three things:

◆ Concern 1: Advertising
Google's acquisition of Fitbit means that the technology that develops and operates the database that contains user health information and the Fitbit database will be Google's. Google will gain a huge amount of data that can be used to personalize ads, making it more difficult for rivals to rival Google's services in the advertising market. The European Commission has also pointed out that advertisers may eventually face rising advertising costs and narrow their options.

◆ Concern 2: Access to API
Fitbit devices access databases via Web APIs to provide services and retrieve data to users. The European Commission has pointed out that Google could restrict access to competitors' Web APIs for Fitbit, which would cost start-ups in the digital healthcare sector in Europe.

◆ Concern 3: Share of wearable devices
The European Commission was concerned that Google could be detrimental to competitors' wearable device competitors by reducing interoperability with Android smartphones.



In response to the European Commission's consultation, Google has made the following commitment:

◆ Advertising commitment
Google does not use user health data collected from Fitbit devices for advertising. In addition, Fitbit user data is clearly distinguished from Google data used for advertising. Google also guarantees that users in the

European economy will ask for permission to use Fitbit data with Google services such as Google Maps, Google Search, and Google Assistant.

◆ API commitment
Google will continue to license Android OEMs free of charge for APIs that cover the core functionality needed to interoperate with Android smartphones. It also provides Fitbit competitors with open source API source code that covers the core functionality needed for interoperability. In addition, it does not compromise the user experience of third-party wearable devices or prevent third-party apps from accessing the Google Play Store by displaying warnings, error messages, or requesting permission.


by

Nick Richards

In response to Google's commitment, the European Commission concludes that 'acquisitions modified by the commitment do not raise market competitive concerns,' and will take over Fitbit as long as it fully adheres to the above two commitments. I decided to admit it.

Margrethe Vestager, Executive Vice President of the European Commission, said, 'We were able to approve Google's offer to buy Fitbit because the deal opens the wearable device market and the new digital health market open and competitive. It's guaranteed to stay, and users will decide whether to share their data on how to use the data collected by Google for advertising purposes and how to protect the interoperability of Android devices due to wearable competition. You can choose. '

A Google spokeswoman told CNBC in the economic media, 'We understand that the European Commission wants to investigate the Fitbit acquisition in detail and has made a legally binding commitment. We have presented and worked constructively to resolve regulatory concerns, believing that this partnership will spur innovation in wearable devices and enable the development of products that support people's healthy lives. I'm doing it. '


by Iyan Adeendren Ayyan

The Australian Competition and Consumer Commission is also discussing Google's acquisition of Fitbit, and with this approval, the Fitbit acquisition will be complete.

Consultation begins on proposed Google Fitbit undertaking | ACCC
https://www.accc.gov.au/media-release/consultation-begins-on-proposed-google-fitbit-undertaking

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