EC Moves Ahead with Investigation into Google - Fitbit Merger

The European Commission decided to move deeper into a planned Google purchase of Fitbit moved with a full-scale probe. The EC decided that the move had raised serious concerns over control of user data.

Executive vice president of EC and a competition commissoner Margrethe Vestager, explained the probe will focus on ensuring control by Google over data collected through wearable devices as a result of the transaction does not distort competition. She noted a belief use of wearables by European consumers is expected to grow significantly in the coming years, along with an associated hike in the data produced as factors.

The EC stated it was unconvinced by a pledge Google made around protecting user data, while also expressing concerns about the potential impact on the digital healthcare sphere and whether Google could degrade the interoperability of rivals’ wearables with its Android OS. The commission has until 9 December to make a ruling.

Google SVP of devices and services Rick Osterloh defended the $2.1 billion deal, stating it would increase competition in wearable hardware, noting the sector already had vibrant competition from companies including Apple, Samsung, Garmin and Fossil. The acquisition is also being scrutinised by the US Department of Justice.