EU launches full scale investigation into the Google-Fitbit acquisition

[soldier_ph]

Summary

The European Commission has announced that it launches a full scale investigation into the acquisition of Fitbit by Google. The announcement follows a preliminary review, and threatens to derail the purchase of the popular fitness-tracking firm in fear of a possible total control of Fitbits user data by Google. Alphabet, Google's parent company, agreed on a 2.1 Billion USD takeover of the wearable tech firm last year, Google has also promised last month to not use any of the users Health data for targeted advertising. Furthermore the Commission is concerned that the proposed transaction would further entrench Google's market position in the advertising markets by increasing the already vast amount of data that Google could use for personalisation of the ads it serves and displays online.

 

Quotes

Quote

-Quote from the BBC Article-

 

The European Commission will carry out a full-scale probe into Google's takeover of Fitbit.

The announcement follows a preliminary review, and threatens to derail the purchase of the fitness-tracking firm.

It comes despite Google's offer last month to not use Fitbit's health data for ad targeting.

Google's parent company Alphabet agreed a $2.1bn (£1.6bn) takeover of the wearable tech firm last year. However, the deal has yet to be completed.

"The commission is concerned that the proposed transaction would further entrench Google's market position in the online advertising markets by increasing the already vast amount of data that Google could use for personalisation of the ads it serves and displays," the regulator said.

The watchdog said its investigation should be completed by 9 December.

In response, the tech giant said it would cooperate with the process.

"We appreciate the opportunity to work with the European Commission on an approach that addresses consumers' expectations of their wearable devices," blogged Google's devices chief Rick Osterloh.

 

My thoughts

Well Google really wants to control all of the data, don't they ? My biggest concern with this acquisition is not that they'll use the Health user data for targeted advertising, they'll do that anyways 'cause they're Google, but rather that they're gonna kill of Fitbit in a few years should this acquisition be approved of. They'll use Fitbits Technology and engineers to make their own Pixel watch and maybe even innovate a bit in the Android Smartwatch space and not leave all the Market share to Apple and after that Fitbit will either die off or it will become one of those companies who stop innovating because their Parent company decided that they don't need funding anymore. No matter what the outcome, it'll probably end badly for Fitbit knowing Google.

 

Sources

BBC

 

Forbes

[ImAlsoRan]

I kinda want to move to California just for the "do not sell my data" button.

[zeusthemoose]

Is fitbit being bought out by Alphabet and being merged with Google or will they still technically be two separate companies and just share whatever they need to?

[TempestCatto]

8 minutes ago, ImAlsoRan said:

I kinda want to move to California just for the "do not sell my data" button.

With all the other regulations and shitball laws in place, it's not worth it. But you know what is worth it? Our sponsor!

[soldier_ph]

3 minutes ago, zeusthemoose said:

Is fitbit being bought out by Alphabet and being merged with Google or will they still technically be two separate companies and just share whatever they need to?

Alphabet wants to acquire Fitbit and let it be a Google owned company in it's eco system. Just like they did with Nest and Nord. To the later just got killed off in typical Google fashion. Also here's a list of all companies Google has acquired over the years and then killed of, I'm suspecting Stadia to get added at the end of they year:

https://killedbygoogle.com/

[soldier_ph]

3 minutes ago, TempestCatto said:

But you know what is worth it? Our sponsor!

Honey !

[Blademaster91]

That's disappointing if they want to kill off Fitbit, no reason they couldn't keep the dev team around and use the tech for a Pixel watch.

Another one Google plans to kill off is Play Music, Google wants users to instead switch to Youtube Music, and if you want to use it on your phone with the screen locked you'll have to buy premium which really sucks IMO.

The Nest wasn't too surprising, but I don't like IoT devices because a company can suddenly decide if your device is obsolete, can't do that with a plain thermostat.  And it seems that people like owning their games and not enough people have a fast enough connection to actually use Stadia  so it doesn't make sense for Google to invest into Stadia.

[Windows7ge]

So the EU is basically trying to step in saying "Google, Nah man, you collect enough user data as it is you don't need more.".

[Salv8 (sam)]

4 hours ago, Pascal... said:

Honey !

honey is the free shopping extension that sells your data even faster then the leading competitor!

go to honey.com/LTT to download the extension and receive $5 in honey coupons!

[Froody129]

The thing is that they will use the data anyway because of the bullshit fines imposed on giant companies who break the law. You literally just build those fines into the bottom line as a normal business expense.