EU Could Block Google’s $2bn Purchase of Fitbit

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Did you know that EU Could Block Google’s $2bn Purchase of Fitbit? The European Union is working towards a deep investigation into Google’s $2.1 billion purchase of Fitbit. This could even lead to blocking the deal totally, it also said

EU Could Block Google's $2bn Purchase of Fitbit

This Union also warned towards the data collected through wearable devices will be key in the future, and that Google having so much information about user’s heath and other activities could unfairly boost their businesses.

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EU Could Block Google’s $2bn Purchase of Fitbit

According to the INDEPENDENT, the European Union’s executive commission said it has a concern towards the deal between Google and Fitbit. It says this deal could entrench Google’s stand in the online advertising market by “increasing the vast amount of data” that the company would use to personalize these ads (advertisements). EU Could Block Google’s $2bn Purchase of Fitbit.

What is the European Union Doing About This?

Margrethe Vestager, the European Union commissioner, stated that the “investigation aims to ensure that control by Google over data collected through wearable devices as a result of the transaction does not distort competition”.

She further went on to say, “The use of wearable devices by Europeans is expected to grow in the coming years”. “This will go hand in hand with the exponential growth of data generated through these devices. This data provides key insights about the life and the health situation of the users of these devices”. EU Could Block Google’s $2bn Purchase of Fitbit

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In addition to the Union’s great concern towards ads, the commission’s investigation will also examine the combination of how Google and Fitbit’s databases and abilities would have an effect on other upcoming digital healthcare markets. It would also check out if Google is in the position to stop other wearables from functioning properly with its Android operating system after purchasing Fitbit.

Google’s Verdict

The tech giant, Google made an attempt to address concerns; how? However, the EU said that such a proposal is “insufficient to dismiss the doubt identified at this stage as to the effects of the transaction”. That was because the supposed silo did not cover all the data Google could obtain as part of the transaction, the company also said.

In a blog post, the head of Google’s hardware, Rick Osterloh, actually defended the deal. In the claim that it would “increase competition” since the search engine giant. Google, does not make products similar to those that Fitbit produces. For the purposes of the data that it keeps and stores. EU Could Block Google’s $2bn Purchase of Fitbit.

Conclusion

Mr. Osterloh further went on in the blog post, “This deal is about devices and not data”. “We’ve been clear from the beginning that we will not use Fitbit health and wellness data for Google ads. We recently offered to make a legally binding commitment to the European Commission regarding our use of Fitbit data”.

However, Google is set to buy Fitbit by November. But the EU is set to block this decision. EU Could Block Google’s $2bn Purchase of Fitbit. A final decision will come in by December 9.

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