Google had launched a bid to acquire renowned fitness tracker manufacturer Fitbit in November last year. The $2.1 billion bid has been under scrutiny due to concerns over antitrust and privacy worries.
At the moment, the European Union (EU) is gearing up to launch an investigation on the deal. The European regulatory body is worried that the proposed $2.1 billion acquisition of Fitbit by Google will lead to sensitive health data collected from Fitbit users over the years getting into the heads of Google. This is viewed as a potential means of strengthening the internet giant’s dominance in the advertising business.
The EU put up a 47-page questionnaire which expected to be filled by potential rivals and other stakeholders of the two companies. The survey questions the potential of the deal to “reinforce Google’s dominance in general search and online advertising”.
Some parts of the directed at users and also developers as the regulator sought to know how this deal will impact developers and the choices customers have should the deal like to a hike in the prices of Fitbit device.
Furthermore, several consumer groups that are not affiliated to ay government have also voiced their decent to the acquisition. The groups include BEUC, which unites EU consumer advocates, as well as the Consumer Federation of America in the US and digital rights groups in Mexico, Brazil and Australia.
The groups are concerned that the deal “would be a game-changer not only for how people interact with the online world but also for digital and related health markets,” a statement said. The major concern borders on Google using the acquisition to venture into new areas and the stifle competition. The brand is presently the owner of the WearOS for wearable devices.
Australia’s Competition and Consumer Commission had earlier on last month raised concerns that the transaction could “further entrench” Google’s dominance and “adversely affect competition in several digital advertising and health markets.”
The deal snow before EU antitrust regulators who are expected to reach a decision by July 20.
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