Last updated on December 8th, 2022 at 02:15 pm
For $ 2.1 billion, Google will gain access to data about all Fitbit users
Australia’s antitrust authority has warned that Google’s $ 2.1 billion acquisition of fitness bracelet maker Fitbit could put too much data in the hands of people, and this would harm competition in the healthcare and online advertising markets.
Australian regulator believes Google’s deal with Fitbit will hurt competition
The Australian Competition and Consumer Protection Commission (ACCC) was the first regulator to express aloud concern over the deal.
“Buying Fitbit will enable Google to create an even more complete set of user data, further strengthening its position and increasing the market entry threshold for potential competitors,” said ACCC Chairman Rod Sims. “The user data available to Google has made it so valuable to advertisers that it only faces limited competition.”
ACCC does not have the authority to block a deal outside of Australia. In any case, the decision published today is preliminary, and the final should be announced on August 13.
The European Commission is due to rule in July. In May, BEUC, the European Consumer Organization, said it was concerned about the deal between Google and Fitbit, but the EU antitrust authority has not yet indicated its position.
The US Department of Justice undertook to assess the legality of the transaction and its possible consequences in December last year, and so far has not reported on the results of its work. Organizations such as the Center for Digital Democracy, Public Citizen, and Consumer Action, which monitor human rights in the digital age, are opposed to the deal.
Google, part of the Alphabet holding, has promised not to use Fitbit data for advertising and to provide Fitbit users with the ability to manage their data.
