🏆 Which sectors are performing best this quarter?Ask WarrenAI

U.S., EU advocacy groups warn against Google's purchase of Fitbit

Published 07/01/2020, 11:06 PM
Updated 07/01/2020, 11:10 PM
© Reuters. FILE PHOTO: Fitbit Blaze watch is seen in front of a displayed Google logo in this illustration

© Reuters. FILE PHOTO: Fitbit Blaze watch is seen in front of a displayed Google logo in this illustration

WASHINGTON (Reuters) - Twenty advocacy groups from the United States, Europe, Latin America and elsewhere signed a statement Wednesday urging regulators to be wary of Google's $2.1 billion bid for fitness tracker company Fitbit Inc (N:FIT) because of privacy and competition concerns.

The 20 organizations - which include the U.S.-based Public Citizen, Access Now from Europe and the Brazilian Institute of Consumer Defense - argued that the deal would expand the already considerable clout in digital markets of Alphabet Inc's (O:GOOGL) Google.

Acquiring Fitbit would give Google such intimate information about users as how many steps they take daily, the quality of their sleep and their heart rates.

"Past experience shows that regulators must be very wary of any promises made by merging parties about restricting the use of the acquisition target’s data. Regulators must assume that Google will in practice utilize the entirety of Fitbit’s currently independent unique, highly sensitive data set in combination with its own," the groups said.

Australian and Canadian groups were among the signatories.

A Google spokeswoman said the tech wearables space was crowded.

"This deal is about devices, not data," she said. "We believe the combination of Google's and Fitbit's hardware efforts will increase competition in the sector."

Google announced the deal in November to take on competitors in the crowded market for fitness trackers and smart watches. Fitbit's market share has been threatened by deep-pocketed companies like Apple Inc (O:AAPL) and Samsung Electronics Co Ltd (KS:005930).

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.

Australia's competition authority said this month that it may have concerns about the deal and would make a final decision in August.

EU antitrust regulators will decide by July 20 whether to clear the deal with or without concessions or open a longer investigation.

© Reuters. FILE PHOTO: Fitbit Blaze watch is seen in front of a displayed Google logo in this illustration

In Washington, Google is 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.

GOOGL: A Bull or Bear Market Play?

Don't miss out on the next big opportunity! Stay ahead of the curve with ProPicks – 6 model portfolios fueled by AI stock picks with a stellar performance this year..

In 2024 alone, ProPicks' AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record.

With portfolios tailored for Dow stocks, S&P stocks, Tech Stocks, and Mid Cap stocks, you can explore various wealth-building strategies.

So if GOOGL is on your watchlist, it could be very wise to know whether or not it made the ProPicks lists.

Unlock ProPicks now

Latest comments

Chris SundoJul 02, 2020, 10:10
With all the concern over HUAWEI spying on, or misusing American data, and now everyone assuming that GOOGLE will be using Americans' data and yet NOBODY in government is willing to conduct an 'internal privacy and competition concerns' audit .. well, the writing is on the wall. The audit has to come before allowing Google to go ahead with a merger purchase. All the gov't has to do is send an army of warm bodies in there and analyze systems, procedures, interrogate employee users, examine documents and flow charts, etc to get to the bottom of the mess. - What are the complainants waiting for? Such concerns nor the audit can not be brushed under the carpet coz it's going to rear its ugly head in the future while meanwhile having caused a mess.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.