Google introduced its plans to acquire Fitbit for $2.1 billion again in November. As of this writing, the deal has but to undergo, courtesy of all the standard regulatory scrutiny that happens any time one massive firm buys one other. EU regulators are typically a key hurdle for these kinds of offers, and this time it could be no completely different.
Citing “people accustomed to the matter,” Reuters notes that Google may be dealing with down some scrutiny within the type of an EU antitrust investigation if it doesn’t make some concessions. The center of the priority right here is a matter of health privacy. Fitbit — like many different wearable firms — collects a tremendous quantity of health info from wearers.
Google, after all, is an organization tremendously invested in information and promoting. Critics of the deal have steered that buying Fitbit would offer yet one more wealthy vein of information for Google to mine. As such, the deal might hinge on the promise that Google won’t ever use health information to promote adverts.
The stipulation is consistent with a promise the company made when the acquisition was first introduced, with the corporate’s head of {hardware} Rick Osterloh promising, “Privateness and safety are paramount. While you use our merchandise, you’re trusting Google with your info. We perceive this is a giant accountability and we work onerous to guard your info, put you in management, and provide you with transparency about your information.”
In a follow-up to this week’s reporting, the corporate famous that it believes the acquisition would enhance competitors. Whereas Fitbit has a large footprint, Apple, Xiaomi, and Huawei at the moment dominate the class, due partly to Fitbit’s late begin within the smartwatch class. Google’s efforts to make inroads via Put on OS have largely come up brief, although the corporate did additionally buy a piece of smartwatch tech from Fossil final January.
A spokesperson additionally tried to place to relaxation potential regulatory fears, stating, “All through this course of, we have been clear about our dedication to not use Fitbit health and wellness information for Google adverts and our accountability to offer individuals with alternative and management with their information.”
Regulators are set to decide on the deal by July 20. Google reportedly has till July 13 to present its concessions.
Google introduced its plans to acquire Fitbit for $2.1 billion again in November. As of this writing, the deal has but to undergo, courtesy of all the standard regulatory scrutiny that happens any time one massive firm buys one other. EU regulators are typically a key hurdle for these kinds of offers, and this time it could be no completely different.
Citing “people accustomed to the matter,” Reuters notes that Google may be dealing with down some scrutiny within the type of an EU antitrust investigation if it doesn’t make some concessions. The center of the priority right here is a matter of health privacy. Fitbit — like many different wearable firms — collects a tremendous quantity of health info from wearers.
Google, after all, is an organization tremendously invested in information and promoting. Critics of the deal have steered that buying Fitbit would offer yet one more wealthy vein of information for Google to mine. As such, the deal might hinge on the promise that Google won’t ever use health information to promote adverts.
The stipulation is consistent with a promise the company made when the acquisition was first introduced, with the corporate’s head of {hardware} Rick Osterloh promising, “Privateness and safety are paramount. While you use our merchandise, you’re trusting Google with your info. We perceive this is a giant accountability and we work onerous to guard your info, put you in management, and provide you with transparency about your information.”
In a follow-up to this week’s reporting, the corporate famous that it believes the acquisition would enhance competitors. Whereas Fitbit has a large footprint, Apple, Xiaomi, and Huawei at the moment dominate the class, due partly to Fitbit’s late begin within the smartwatch class. Google’s efforts to make inroads via Put on OS have largely come up brief, although the corporate did additionally buy a piece of smartwatch tech from Fossil final January.
A spokesperson additionally tried to place to relaxation potential regulatory fears, stating, “All through this course of, we have been clear about our dedication to not use Fitbit health and wellness information for Google adverts and our accountability to offer individuals with alternative and management with their information.”
Regulators are set to decide on the deal by July 20. Google reportedly has till July 13 to present its concessions.