EU Clears Google Purchase of Fitbit, With Conditions
Google's proposed acquisition of Fitbit can proceed, with conditions, the European Commission said. There was an investigation of the transaction and the companies' complementary activities, it said Thursday. Fitbit has limited market share in the smartwatch segment in Europe, where…
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there are many larger rivals, such as Apple, Garmin and Samsung, so the acquisition will lead to "very limited horizontal overlaps," the EC said. The probe focused on data collected by Fitbit wearable devices and the interoperability of those devices with Google's Android operating system for smartphones. The EC was concerned Google would acquire Fitbit's database on users' health and fitness, plus the technology to develop a similar database, making it hard for rivals to match Google's services in online search advertising. Other worries were that Google might restrict competitors' access to Fitbit's web application programming interface, to the detriment of European startups in the emerging digital healthcare space, and that Google could put competing makers of wearable wrist devices at a disadvantage by degrading their operability with Android smartphones. Google has offered commitments on advertising, web API access and Android APIs to run for 10 years and be monitored by a trustee to be appointed before the transaction closes, the EC said. "This deal will spur innovation in wearable devices and enable us to build products that help people lead healthier lives," emailed a Google spokesperson. "We understand that regulators wanted to look closely at this transaction, and we have worked constructively with them to resolve their concerns, including the set of legally binding commitments the" EC accepted. The spokesperson cited his company's past "assurances" about the takeover and privacy and working with other stakeholders.