In a major setback to Google and its desire to jumpstart its wearables business, the EU will reportedly investigate the Fitbit acquisition.
News of the investigation comes via Reuters, which cites multiple sources.
According to the publication, the European Commission will announce next week that it is investigating Google’s planned $2.1 billion acquisition of wearable-maker Fitbit. Google announced the acquisition last November and said it would close the deal in 2020, pending regulatory approval. But the EU began asking Google’s rivals about the deal earlier this month. And so Google responded by declaring, again, that it would not use personal data from the devices for advertising.
That ploy has apparently not appeased EU regulators. Instead, it will launch a four-month probe into the deal following its initial review.
“The wearables space is crowded, and we believe the combination of Google and Fitbit’s hardware efforts will increase competition in the sector, benefiting consumers and making the next generation of devices better and more affordable,” a Google statement notes.