Google has completed its $ 2.1 billion acquisition of Fitbit, the company announced today. The news follows the EU’s announcement late last year that it had approved the deal, after Google made a series of commitments over the planned operation of Fitbit and the use of health data.
In his announcement, Rick Osterloh, Google’s chief hardware officer, said the acquisition was about devices, not data. He emphasizes this point and reiterates Google’s commitments on how it will handle acquisitions in markets around the world. These promises include that you will not use the health and wellness data of Fitbit users for Google’s ad tracking.
Osterloh also said the deal would not affect how third-party fitness trackers work with Android, or how Fitbit works with other services that do not work with Google.
In a statement, James Fitbit CEO James Park welcomed the news, saying the acquisition would allow the company to “innovate faster, offer more choices and make even better products.” However, he added, emphasizing that Fitbit’s products and services will continue to work on iOS and Android.
“We will maintain a strong protection of data privacy and security, giving you control over your data and staying transparent about what we collect and why,” Park said.
These were data concerns that prompted regulators around the world to investigate the deal. Late last year, EU regulators approved the agreement and completed the investigation they had already started in August.
The approval has a number of conditions, including that Google will not be able to use Fitbit data from users in the European Economic Area (EEA), such as GPS and health data, for advertising targets. As part of the approval, EEA users should also be able to exclude the option of not sharing their health and wellness data with other Google services, and Google has agreed to support Android’s portable clothing with Android. These obligations, including the opt-out option, apply to Fitbit users worldwide, Google says The edge, so that users outside the EEA can benefit.
Google’s announcement appears to be ahead of the Australian Competition and Consumer Commission’s (ACCC) final decision on the acquisition. At the end of December, The guardian reports that Google has risked a $ 400 million fine if it continues with the transaction without regulatory approval.
At the time, the ACCC rejected Google’s proposed terms for the data review deal, as well as fears it could force Fitbit’s competitors out of the portable market because of their reliance on Google’s Android. Although ACCC chairman Rod Sims acknowledged the concessions offered by Google, he expressed concern that they could not be ‘effectively monitored and enforced in Australia’. The Australian regulator has said its investigation will continue before a new ruling date of 25 March 2021.
Google declined to comment on the ACCC’s ongoing investigation.
The U.S. Department of Justice also issued a statement on Thursday stating that it was still investigating the agreement and that it had not reached a conclusion before Google’s announcement.
‘The Antitrust Division’s investigation into Google’s acquisition of Fitbit continues. Although the Division has not made a final decision on whether to pursue enforcement action, the Division continues to investigate whether Google’s acquisition of Fitbit could harm competition and consumers in the United States, “the statement said. According to The New York Times. “The Division remains committed to conducting this review as thoroughly, efficiently and expeditiously as possible.”
Google announced a purchase of Fitbit in November 2019, when Osterloh called it ” an opportunity to invest even more in Wear OS and to also launch Made by Google portable devices. ”
In its letter announcing the acquisition, Park said Fitbit has now sold more than 120 million devices in more than 100 countries.
Update 14 January, 10:13 ET: An added statement from the Department of Justice indicating that the investigation into Google’s acquisition of Fitbit is continuing.
Update January 14 10:41 AM ET: Explain that Google’s commitments to EU regulators will apply worldwide, including the possibility of not sharing data. Google also declined to comment on the ACCC’s ongoing investigation into the deal.