Google set out to acquire fitness company Fitbit in November of last year, but the deal hasn't gone through all the required regulatory approvals yet. There have been concerns that the acquisition could lead to reduced competition and Google extending its apparatus of data-collecting for targeted advertisements, and now advocacy groups around the world are urging governments to closely investigate the deal.

A total of 20 advocacy groups based in Europe, the United States, Latin America, and other regions signed a joint statement urging government regulators to be careful about Google's acquisition of Fitbit. The group included Public Citizen in the US, Access Now in Europe, Privacy International, the Brazilian Institute of Consumer Defense.

"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," the groups said. "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."

Google says the deal is about devices, not data.

In a statement provided to Reuters, a Google spokesperson said, "This deal is about devices, not data. We believe the combination of Google’s and Fitbit’s hardware efforts will increase competition in the sector."

Meanwhile, regulators in Europe are investigating if the deal would drive other wearable manufacturers out of the market or boost Google's dominance in online advertising and search. A 47-page questionnaire was reportedly sent to rival companies by EU regulators, with questions like "In your view, would the aggregation of Fitbit’s data to Google’s database strengthen Google’s position in the supply of online search advertising services?"

The European Commission is expected to decide on the deal by July 20th. Australia's antitrust regulator has warned against the deal, but won't make a final judgment until August.

PRESS RELEASE

Source: Reuters (1, 2)

UPDATE: 2020/07/24 11:49am PDT BY JULES WANG

Sources: EU wants pledges

Sources to the Financial Times say the EU is pushing Google to pledge that it will not use Fitbit data to enhance its search engine product if it wants to complete its acquisition quickly. Otherwise, regulators may plunge into an investigation that could last weeks or even months.

The union is at a disadvantage in this scenario as the European Commission's 2016 decision to force Apple to pay more than €13 billion in back taxes was overturned by the General Court in Luxembourg. One close observer told the paper that an investigation does not guarantee that the EU will secure the commitments it wants from Google, if any at all.

Source: Financial Times via Ars Technica

Via: BBC