The European Union has launched an investigation against Google due to its acquisition of Fitbit. EU officials are concerned that the acquisition will further consolidate Google’s leadership in the online advertising market. The EU fears that ads collected from Fitbit’s wearable products can also be used for personalized ad display.
The press release by the European Commission on the issue states the following: “Data collected with wrist-wearable products seems to be an important advantage in the online advertising markets. Increasing the data advantage of Google in personalized ads on the search engine and other pages makes it difficult for competitors to respond to Google.
It was announced in November that Google bought Fitbit for $ 2.1 billion, and concerns have begun to be heard about this deal since then. Google responded to these concerns by saying that data collected from Fitbit devices will be stored independently of the advertising business.
However, this statement does not seem to satisfy the European Union. According to the EU; Google’s promise to keep the data in a separate location does not cover all of the valuable data the company can access and use in advertising thanks to Fitbit.
In addition to the possibility of strengthening Google’s position in the advertising market, it is stated that the digital health market in Europe may be affected by the purchase. Apart from that, there are some question marks in mind about the compatibility of competing devices to Android.
The European Union must complete its investigation into Google as of December 9, 2020.