People familiar with the matter said Thursday that Google’s offer of $ 2.1 billion (around Rs. 15,724 crores) for fitness tracker Fitbit will face a thorough European Union antitrust investigation next week.
This month, Google Alphabetics Unit offered not to use Fitbit Health data to help target ads in an attempt to address the European Union’s antitrust concerns. Opening a thorough investigation indicates that this is not enough.
The deal, announced last November, will see Google compete with market leader Apple and Samsung in the smartwatch and physical activity tracking market, along with other companies, including Huawei and Xiaomi.
One said the European Commission, which will begin the investigation after the preliminary review ends on August 4, is expected to benefit from the four-month investigation to further explore the use of data in healthcare.
The commission declined to comment. Google repeated previous comments, saying the deal was device-related, not data-related.
“The portable space is crowded and we believe that the combination of Google and Fitbit’s hardware efforts will increase competition in this segment, which will benefit consumers and make the next generation of devices better and more affordable,” said one spokesman.
Google makes data promises in a bid to gain European Union approval for the Fitbit purchase
Google’s promise of data has drawn criticism from healthcare providers, portable competitors, and privacy advocates for failing to address their concerns that the deal will strengthen their dominance in the online search market and dataset.
The MLex news agency was the first to report the impending EU investigation.