The Australian Competition and Consumer Commission (ACCC) is concerned the deal could give Google access to even more data about its users, which would create barriers of entry for its rivals. “Past acquisitions by Google, of both start-ups and mature companies like Fitbit, have further entrenched Google’s position,” ACCC Chair Rod Sims said in a statement. (Reuters)
Talking point: Google’s parent company Alphabet announced in November 2019 that it had entered into an agreement to buy Fitbit, which develops wrist-worn wearable devices. The search engine giant called the acquisition an opportunity to “introduce Made by Google wearable devices into the market.” At the time, Google said it would not use health and wellness data from Fitbit for its ads, but that hasn’t settled concerns. EU regulators are mulling the deal over, and have until July 20 to decide whether it can go ahead. The U.S. Department of Justice is also scrutinizing the deal. Australia’s competition authority will make a final decision on August 13; while it cannot block a deal outside its jurisdiction, it can order certain conditions such as asset sales. The watchdog is also investigating Facebook’s recently announced acquisition of Giphy.