Google and Fitbit state they have closed on a deal for the search giant to purchase the fitness tracker brand, but regulators in both the United States and Australia are refrained from doing investigating the acquisition. The transaction, reported to be worth $2.1 billion, was originally revealed back in November 2019.
Fitbit composed in an official article the other day that it wanted to let the general public know that Fitbit is now officially part of Google. “Its an incredibly exciting minute for us as a company and for our Fitbit community of users around the world,” specified Fitbit co-founder James Park.
Rick Osterloh, Senior Vice President, Devices & & Services at Google, also appeared to confirm the takeover through Googles official blog. The post specified that Google has finished its acquisition of Fitbit and that the deal had “always been about gadgets, not data” claiming that the search giant had been clear because the start that it will secure Fitbit users privacy.
And yet, at the exact same time, Reuters reported that The United States Department of Justice had still not chosen if it will enable the deal the go through. The USDOJ stated it stated it “has not reached a decision about whether to pursue an enforcement action” relating to the Fitbit deal.
The Australian Competition and Consumer Commission Chair, Rod Sims, is also priced estimate as being on the side of caution when it pertained to validating that this offer had actually gotten over the line. He said: “Depending on the results of our examination, we will think about whether to take legal action on this matter.” Reports late last year suggested that Google was running the risk of a fine of up to a $400 million if it went on with the deal without the regulators approval.
The Australian Competition and Consumer Commission Chair, Rod Sims, is also quoted as being on the side of caution when it came to confirming that this deal had actually gotten over the line. We are positive this deal will increase competitors in the highly crowded wearables market, and weve made commitments that we prepare to carry out worldwide.”
Authorization for the deal to go ahead in Europe came with an entire host of cautions, such as Google not being enabled to utilize Fitbit GPS and health data from users in the European Economic Area (EEA) for targeted advertising. Those of us in the EU can likewise opt-out of having our health and health data shared with other Google services. It stays to be seen, however, if comparable rules are executed in North America and Australia.
The USDOJ has been thoroughly examining the deal for the last 14 months, and Google says it complied with whatever the Department of Justice has requested for. The European Commission gave its approval for the handle December 2020, so it would be a surprise if this does not go through in the end, but there does appear to be some last-minute snags.
In an official statement, a Google spokesperson said. “We continue to be in touch with them [USDOJ] and were committed to answering any additional questions. We are confident this deal will increase competition in the extremely crowded wearables market, and weve made commitments that we prepare to implement globally.”
What does the offer suggest for customers?
Fitbit states that it will remain devoted to “doing whats right, to putting your health and wellness at the centre of everything” whilst emphasising that it is not searching for a one-size-fits-all approach, and rather giving customers choices that work across both Android and iOS.
Google states that the deal will help it make health and wellness more accessible to more individuals. “Were confident the combination of Fitbits leading technology, item proficiency and health and health development with the best of Googles AI, software and hardware will drive more competition in wearables and make the next generation of devices better and more budget-friendly,” writes Osterloh.
Permission for the deal to go ahead in Europe came with an entire host of caveats, such as Google not being enabled to use Fitbit GPS and health data from users in the European Economic Area (EEA) for targeted advertising. Those of us in the EU can likewise opt-out of having our health and wellness information shared with other Google services.
Fitbit states it has actually sold more than 120 million devices in over 100 countries./ © NextPit