EU launching deep probe into Google’s planned $2.1 billion Fitbit buy
Google could both abuse the data and also lock out competitors, EU regulators warn. …
reader comments
49 with 27 posters participating
Regulators in the European Union are launching a deep investigation into Google’s proposed acquisition of wearables maker Fitbit after expressing concerns that giving Google access to Fitbit’s user data could “distort competition.”
The Commission’s in-depth investigation will examine not only the potential outcomes for the advertising market if the transaction goes through, but it will also look at the effects of the deal on the digital healthcare sector and the potential for Google to lock competitors out of access to Android users.
Data provided by wearable devices “provides key insights about the life and the health situation of the users of these devices,” Margrethe Vestager, the European Commission’s head of competition, said in a written statement. “Our investigation aims to ensure that control by Google over data collected through wearable devices as a result of the transaction does not distort competition.”
Google announced its plan to acquire Fitbit back in November in a transaction valued at $2.1 billion. Any merger or acquisition of that scale draws antitrust attention, both in the US and in the EU, and regulators in every country where the companies operate began their merger review processes.
European merger reviews take place in two phases. In the first phase, competition regulators conduct a preliminary investigation. If they don’t identify any real problems with the deal, the companies can go forward
Continue reading – Article source
