US and European Advocacy Bodies Express Concern Over Google's Proposed Acquisition of Fitbit
Google's ambitious move to acquire Fitbit Inc, announced in November, has sparked a wave of concerns from advocacy groups worldwide. The deal, valued at $2.1 billion, aims to bolster Google's presence in the crowded market for fitness trackers and smartwatches, but critics argue it could pose significant privacy and competition issues.
The deal has caught the attention of Australia's competition authority, who may make a final decision in August. Similarly, EU antitrust regulators will decide by July whether to clear the deal with or without concessions or open a longer investigation.
The acquisition could potentially give Google access to intimate user data such as daily step count, sleep quality, and heart rates. This has raised eyebrows among privacy advocates, with organisations like Public Citizen (U.S.), Access Now (Europe), and the Brazilian Institute of Consumer Defense voicing their concerns.
Twenty advocacy groups from the United States, Europe, Latin America, and elsewhere have signed a statement urging regulators to be cautious. They argue that regulators should not trust promises made by merging parties about restricting the use of the acquisition target's data.
Google's spokeswoman maintains that the deal is about devices, not data. She also stated that the tech wearables space is crowded, suggesting that the acquisition is aimed at increasing competition, not consolidating it.
However, the groups believe that Google will, in practice, utilize the entirety of Fitbit's currently independent unique, highly sensitive data set in combination with its own. This could potentially tip the scales in favour of Google, threatening Fitbit's market share, which has been under pressure from deep-pocketed competitors like Apple Inc and Samsung Electronics Co Ltd.
Google is currently under antitrust investigation by the Justice Department, a congressional committee, and dozens of states for allegedly using its massive market power to harm smaller competitors. This adds another layer of complexity to the potential Fitbit acquisition, with regulators closely scrutinising Google's intentions.
Notably, Australian and Canadian groups are among the signatories of the statement, but organisations from countries outside the USA, Europe, and Latin America that signed the warning have not been specifically identified in the available search results.
As the decision-making process unfolds, the outcome of Google's bid for Fitbit will be closely watched, with implications for consumer privacy, competition, and the future of the wearable technology market.
