EU poised to clear $2.1bn Google Fitbit deal after new promises
Search group promises not to use device’s data to target advertising for a decade
The EU is poised to approve Google’s $2.1bn deal for Fitbit, according to two people familiar with the situation, after new concessions including a promise not to use the wearable company’s data to target adverts for 10 years.
Google has also offered guarantees that other devices will have access to Fitbit’s health data, with a user’s consent, on the same terms as Google and that Fitbit’s customers can continue to use services like Strava and Map My Run.
In addition, rival wearable companies will not be hindered from using Google’s Android and Cloud platforms.
The promise not to use health data gathered by Fitbit’s tens of millions of users to personalise advertising was extended from five years to a 10-year period. This pledge includes location data from any fitness activity.
The US technology giant also proposed a monitoring trustee that will be approved by Brussels to make sure that Google remains compliant with these terms, according to these people.
Google’s deal for Fitbit is facing fresh opposition from trade groups and complainants to the case, who argue that consumers will lose out. BEUC, the umbrella group that represents EU consumers, has said regulators should assume that “in practice” Google will use all of Fitbit’s “currently independent unique, highly sensitive data set”.
The deal has previously faced direct opposition from Margrethe Vestager, the EU commissioner in charge of competition policy.
Regulators are now consulting with other interested parties on the concessions offered by Google. But while a final agreement has not been reached, the merger is expected to be cleared despite internal opposition by some corners within the European Commission, these people said.
Meanwhile, a letter signed by more than 10 leading economists argued that the deal should not be approved, despite the proposals.
“The essential concern around this deal is the way that it enables Google to implement conduct that will strengthen its ability to gather and exploit health data, and undermine the ability of rivals to do so, in order to leverage its power into health and insurance markets,” the letter said.
Google said: “This deal is about devices, not data. The wearables space is highly crowded, and we believe the combination of Google and Fitbit’s hardware efforts will increase competition in the sector.
“We have been working with the European Commission on an updated approach to safeguard consumers’ expectations that Fitbit device data won’t be used for advertising. We’re also formalising our longstanding commitment to supporting other wearable manufacturers on Android and to continue to allow Fitbit users to connect to third party services via APIs if they want to.”