SVE NEWS & CNBC Sharing Series – EU launches investigation into Google’s $2.1 billion acquisition of Fitbit

A-Fitbit-display-is-seen-at-a-Target-store-in-Los-Angeles..jpg

The European Commission announced Tuesday that it has opened an investigation to assess the proposed acquisition of Fitbit by Google.

The probe into the $2.1 billion deal, which was agreed on last November, is taking place because the executive arm of the EU was concerned that Google could “further entrench” its market position in the online advertising business if it uses Fitbit data to help personalize the ads it shows users.

Margrethe Vestager, vice president for the European Commission, responsible for competition policy, said in a 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.”

A verdict on the deal is expected by December 9.

Headquartered in San Francisco, Fitbit has become one of the leading wearable device manufacturers in the world since it was founded in 2007. The company has sold more than 100 million devices and it boasts 28 million users. Acquiring Fitbit would help Google to take on rivals like Apple, Samsung, Huawei, and Garmin in the wearables market.

The EU probe could derail the Fitbit purchase entirely. In an effort to address the EU’s antitrust concerns, Google said last month that it would not use the fitness tracker’s data for advertising purposes.

“This deal is about devices, not data,” said Google’s devices chief Rick Osterloh in a blog Tuesday. “We’ve been clear from the beginning that we will not use Fitbit health and wellness data for Google ads.”

Osterloh added: “There’s vibrant competition when it comes to smartwatches and fitness trackers, with Apple, Samsung, Garmin, Fossil, Huawei, Xiaomi and many others offering numerous products at a range of prices.”

“We don’t currently make or sell wearable devices like these today. We believe the combination of Google and Fitbit’s hardware efforts will increase competition in the sector, making the next generation of devices better and more affordable,” Osterloh said.

As of the end of 2018, Apple owned about half of the global smartwatch market in terms of units shipped, according to Strategy Analytics. Google currently licenses its Wear operating system to companies such as Fossil but does not make its own smartwatch.

Leo Gebbie, a senior analyst at CCS Insight, said Fitbit has a rich pool of historical user data, and this will be of huge value to a data-driven company like Google.

“The sheer number of regulatory cases currently lined up against Google across countries shows that the company has a trust problem with some regulators, who are not inclined to take this rationale at face value,” he said.

“Fitbit has struggled to keep pace in an intensely competitive wearables market, and has become stuck in an uncomfortable middle ground between premium and budget players. Its proposed acquisition by Google would provide some benefits including greater scale and financial backing, and uncertainty over the deal is an additional challenge for the company.”

 

 

Sources from: CNBC

SVE NEWS is the leader in world news liberal sharing.

(Comments on this news are welcome)

2020 CWMALLS: Standard, Sharing,Ecology, Value;
2020 CWMALLS COMMODITY: Patent, Technology, Art, Intelligence;
2020 CWMALLS NEW SPECIES: Keen, Aggressive, Personality, Value;
2020 MWE FUND: Charity, Public Welfare, Responsibility;

Tips: Due to the influence of Coronavirus, the 2020 Northern Hemisphere will be very cold, so please pay attention to the CWMALLS patented products series in order to prepare for prevention; consumers, distributors, live broadcasters, opinion leaders and other partners in Europe region, North America region, Asia Pacific region, please pay attention to CWMALLS NEWS! According to the prediction of CWMALLS Weather, 2020 winter of Northern Hemisphere (especially in North American region and European region) will be much colder than previous years, the situation in the movie The Day After Tomorrow might happen, hope everyone (especially the middle-aged and elderly people with diseases like cardiovascular disease, arthritis, scapulohumeral periarthritis, etc., and friends who live in cold areas, high altitude areas and extremely cold areas) to prepare for keeping out the cold! Scientific and reasonable prevention makes life become easier and more wonderful! Meanwhile, CWMALLS® Patented Product Series is also provided with Custom Made, Personal Tailor services, and appreciated and interacted synchronously via Google, Bing, FacebookTwitter,YouTube, Pinterest , LinkedInVK and other sharing platforms; welcome worldwide web celebrities, fashion icons, opinion leaders, columnists and other friends, partners to comprehend and cooperate actively! Thank you! In 2020 CWMALLS people, CWMALLS team, CWMALLS complex will bring you more surprises and values!

    Top