The EU has sent a 60-page questionnaire to Google and Fitbit’s competitors, asking whether the US$2.1-billion deal will harm competition or give the Alphabet subsidiary an edge over rivals. The probe comes as 20 consumer groups around the world, including Canada’s Public Interest Advocacy Centre, urged regulators to block the deal. “Regulators must assume that Google will in practice utilise the entirety of Fitbit’s currently independent unique, highly sensitive data set in combination with its own,” reads the letter. (Financial Times, Business Insider)
Talking point: Google announced in November 2019 that it was buying the wearable manufacturer, promising to be transparent about any data collected and never use Fitbit’s data for Google ads. A Google spokesperson recently told Reuters, “This deal is about devices, not data,” adding that the acquisition “will increase competition in the sector.” That hasn’t dispelled concerns. Google is already under scrutiny by U.S. regulators in a broader antitrust probe of its online ad business. Last month, the Australian Competition and Consumer Commission said it would investigate the “uniqueness and potential value” that Fitbit’s data would give Google. Sources told the Financial Times that the EU could also be getting ready for a more in-depth investigation and may block the deal, with July 20 being the deadline for that decision. Despite those actions, experts say blocking the deal will prove a tough task.