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The European Union has allowed Google to take over Fitbit for $ 2.1 billion, but there are nuances
Fitbit takeover by Google for $ 2.1 billion was pre-approved by the European Commission. The latter outlined a series of obligations that the search giant must fulfill over the next 10 years. They state that Google cannot use health data of Fitbit users in the EU for advertising and demanded a technical separation of Fitbit data from Google data. Regulation applies to EU member states as well as Iceland, Liechtenstein and Norway.
“We are ready to approve Google’s proposed acquisition of Fitbit, but this commitment ensures that the wearable market and the nascent digital health space remains open and competitive,” said Margrethe Vestager, Executive Vice President of the European Commission. “The commitments will define how Google can use the collected data for advertising purposes, how interactions between competing wearable devices and Android will work, and how users can continue to share health and fitness data if they so choose.”.
The European approval of the deal follows months of research into whether Google’s position in the online advertising market could be strengthened by using Fitbit data to target advertisements to users.
Brussels hopes to launch sweeping digital reforms targeting the business models of major U.S. tech companies. The union recently introduced the Digital Services and Markets Act, which will require tech giants to take a significant share of the responsibility for illegal content and goods distributed on their platforms and prevent them from choosing their own services to the detriment of competitors.
Todd Haselton | CNBC
Several EU lawmakers and rivals Google have raised concerns that the acquisition of Fitbit could undermine the privacy of users of the wearable tech company and increase the search giant’s dominance of online. For its part, Google insists the deal is about Fitbit hardware, not access to health data.
“We believe this deal will drive innovation in wearable devices and enable us to create products that help people lead healthier lives,” a Google spokesperson said in a statement. – We understand that regulators want to scrutinize this deal, and we are working constructively with them to resolve concerns, including ready to take on a number of legal obligations that the European Commission has put forward today. They are based on assurances we made from the beginning – a commitment to protecting the privacy of Fitbit users, investing further, and supporting manufacturers and developers. We continue to work with regulators around the world to answer their questions about the upcoming takeover. “.
Fitbit, based in San Francisco, is one of the world’s leading manufacturers of wearable devices. It has sold over 100 million devices to date and has 28 million users. Fitbit acquisition will help Google fight rivals such as Apple, Samsung, Huawei and Garmin in the wearable sector.