Google Fitbit Agreement Completed (Update: January 14th)

Update, January 14, 2021 (12:43 PM ET): The news below makes it look like the Google / Fitbit deal has been secured. However, the U.S. Department of Justice’s investigation into the acquisition continues. This raises doubts as to whether the transaction will proceed without further problems.

The DOJ has given the following statement to some publications (h / t Android Police):

The Antitrust Division’s investigation into Google’s acquisition of Fitbit continues. Although the Division has not finally decided whether to continue enforcement action, the Division continues to investigate whether Google’s acquisition of Fitbit could harm competition and consumers in the United States. The Division is still committed to carrying out this review as thoroughly, efficiently and quickly as possible.

However, it appears that the time limit for a decision with the ongoing investigation has passed. According to a Fitbit statement issued to Android Authority, the company felt comfortable continuing with today’s announcement, despite the DOJ formulating a purchase decision. Here is the Fitbit statement:

We have complied with the extensive review of the DOJ over the past 14 months and the agreed waiting period has expired without them objecting to it. We keep in touch with them and are committed to answering any additional questions. We are confident that this agreement will increase competition in the very pressing drama market, and we have entered into commitments that we plan to implement worldwide.

This essentially amounts to the DOJ agreeing to a time limit to deliver a decision on its antitrust investigation into this agreement. Google claims that the date has since passed, giving the company the power to proceed with the purchase. However, the DOJ says it is still investigating. This is something an attorney should consider, but it seems that this agreement was not quite done as Google and Fitbit say it is.

Original Article, 14 January 2021 (09:26 ET): Today, both Google and Fitbit formally announced the former’s acquisition of the latter. This agreement has been going on for more than a year now. It positions Fitbit as a Google company, but operates independently. This is no different than what Nest was for a few years after the acquisition in 2014.

Related: The best Fitbit trackers you can get right now

Rick Osterloh wrote Google’s announcement of the deal. In his letter, he stressed that “users’ health and wellness data will not be used for Google ads.” He also explained that it is a binding commitment to make the agreement happen, which means that it is not a hollow promise.

Similarly, Fitbit CEO and co-founder James Park wrote a similar letter outlining the deal. In his statement, he uses exactly the same language as Osterloh to assure users that Google will not use people’s health data for monetary gain.

Google Fitbit Agreement: What Can It Mean?

In his letter, Osterloh said that this agreement was about “devices, not data.” This is probably the most important statement surrounding this acquisition. This strongly suggests that Google is looking for Fitbit to bolster its portable hardware ambitions more than anything else.

The portable market has never seen a device from Google, although the market is booming. There have long been rumors about a so-called Pixel Watch, but it has never materialized. With the Wear OS platform at a standstill, this Google Fitbit deal is an easy solution to the biggest G’s biggest problem in portable materials: no hardware.

Related: The best fitness trackers you can get

Fitbit has already brought Google Assistant to its two biggest 2020 launches: the Fitbit Sense and Fitbit Versa 3. In the future, we can expect Assistant and other Google products to appear on Fitbit devices.

In his letter, Park makes it clear that “many of the things you know about Fitbit and what you like will remain the same.” However, it’s only a matter of time before Fitbit becomes more and more Google-friendly. We will have to wait and see how it expands.