EU Approves Google’s Fitbit Acquisition

Posted on December 17, 2020 by Paul Thurrott in Cloud, Fitbit, Google, Mobile, Wearables with 5 Comments

Six months later, the European Union (EU) has finally approved Google’s $2.1 billion acquisition of struggling wearable maker Fitbit.

“We can approve the proposed acquisition of Fitbit by Google because the commitments will ensure that the market for wearables and the nascent digital health space will remain open and competitive,” European Commission (EC) competition commissioner Margrethe Vestager said. “The commitments will determine how Google can use the data collected for ad purposes, how interoperability between competing wearables and Android will be safeguarded and how users can continue to share health and fitness data, if they choose to.”

The EU approval follows what the EC says was an in-depth investigation of the transaction that focused on how Google would use the data collected by Fitbit’s wearable devices. The Commission was concerned that Google would use collected user data to target advertising, restrict access to that data by competitors, and build specific advantages into Android that would make Fitbit devices work better with Google’s mobile platform.

To address those concerns, Google agreed to various commitments over a span of 10 years. For example, it will not use the health and wellness data collected from wearable devices to target advertising in the European Economic Area (EEA) and will silo Fitbit data from any other data that Google uses for advertising. And it will let users access and export their health and fitness data through a free Fitbit Web API that is subject to user consent. And it will not disadvantage competing devices on Android.

“We believe this deal will spur innovation in wearable devices and enable us to build products that help people lead healthier lives,” a Google statement notes. “Regulators wanted to look closely at this transaction, and we have worked constructively with them to resolve their concerns, including the set of legally binding commitments.”

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Comments (5)

5 responses to “EU Approves Google’s Fitbit Acquisition”

  1. Avatar

    codymesh

    On what planet is Google the supposed correct market fit to turn around a struggling maker of wearables? "will spur innovation"? I want to throw up.

  2. Avatar

    rmlounsbury

    Million dollar question is how long it takes the Fitbit acquisition to impact Google's wearable strategy for both software and hardware. I'd imagine that this will lead to Fitbit moving to Wear OS after adding pieces from the Fitbit OS. Hopefully this means that we end up with a far superior Wear OS and fitness tracking tools a year from now.

  3. Avatar

    bluvg

    "...set of legally binding commitments."


    "We'll agree to them, then pay the fines for violating them as a cost of doing business."

  4. Avatar

    thretosix

    Not sure why all the hate, I have a Fitbit and love it. I think this acquisition is a great move. The only Android Smartwatch I've owned the Moto360 I paid a lot of money for, the health tracking was horrible and the battery life was also miserable. My Fitbit goes a week without recharging.

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