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Google-Fitbit deal to be scrutinized in Europe over data competition concerns

Commenting on opening an in-depth investigation in a statement, Commission EVP Margrethe Vestager who heads up both competition policy and digital strategy for the bloc said: The use of wearable devices by European consumers is expected to grow significantly in the coming years.

This data provides key insights about the life and the health situation of the users of these devices.Our investigation aims to ensure that control by Google over data collected through wearable devices as a result of the transaction does not distort competition.

Last years already rowdy antitrust drum beat around big tech has become a full on rock festival so the mood music around tech acquisitions might finally be shifting.

Since news of Googles plan to grab Fitbit dropped concerns about the deal have been raised all over Europe with consumer groups, privacy regulators and competition and tech policy wonks all sounding the alarm at the prospect of letting the adtech giant gobble a device maker and help itself to a bunch of sensitive consumer health data in the process.

Digital privacy rights group, Privacy International one of the not-for-profits thats been urging regulators not to rubberstamp the deal argues the acquisition would not only squeeze competition in the nascent digital health market, and also for wearables, but also reduce what little pressure there currently is on Google to compete in relation to privacy options available to consumers , leading to even less competition on privacy standards and thereby enabling the further degradation of consumers privacy protections, as it puts it.

Last month Reuters revisited the concession, in an exclusive report that cited people familiar with the matter who apparently told it the deal could be waved through if Google pledged not to use Fitbit data for ads.

In the event, Googles headline-grabbing promises to behave itself with Fitbit data have not prevented EU regulators from wading in for a closer look at competition concerns which is exactly as it should be.

In truth, given the level of concern now being raised about tech giants market power and adtech giant Google specifically grabbing a treasure trove of consumer health data, a comprehensive probe is the very least regulators should be doing.

Moreover the fast pace of digital markets can mean a competitive threat may only be a micro pivot away from materializing.

Among others, this is because the data silo remedy did not cover all the data that Google would access as a result of the transaction and would be valuable for advertising purposes, it added.

Original article
Author: Natasha Lomas

TechCrunch is a leading technology media property, dedicated to obsessively profiling startups, reviewing new Internet products, and breaking tech news.

Natasha Lomas has recently written 10 articles on similar topics including :
  1. "Googles push to phase out third party tracking cookies aka its Privacy Sandbox initiative is facing a competition challenge in Europe". (November 23, 2020)
  2. "The question of how policymakers should respond to the power of big tech didnt get a great deal of airtime at TechCrunch Disrupt last week, despite a number of investigations now underway in the United States (hi, Google)". (September 22, 2020)
  3. "The UKs competition regulator will make a decision on whether or not Facebooks purchase of Giphy has a realistic prospect of substantially lessening competition by March 25, it said today, as it continues to scrutinize the acquisition". (January 28, 2021)
  4. "Europe has greenlit Googles $2.1BN acquisition of fitness wearable maker Fitbit, applying a number of conditions intended to shrink competition concerns over letting it gobble a major cache of health and wellness data following months of regulatory scrutiny of the deal". (December 17, 2020)
  5. "European lawmakers are considering new rules for Internet giants that could include forcing them to share data with smaller rivals and/or put narrow limits on how they can use data in a bid to level the digital playing field". (September 30, 2020)
  6. "Google has agreed to pay a 1.1 million fine over misleading star ratings for hotels in France. The tech giant had been applying its own (algorithmic) system of ratings for hotels applied via its search engine and on Google Maps". (February 15, 2021)
  7. "European antitrust regulators now have until almost the end of the year to take a decision on whether to green light Googles planned acquisition of Fitbit". (September 23, 2020)
  8. "A coalition of 135 startups and tech companies with services in verticals including travel, accommodation and jobs have written to the European Commission to urge antitrust action against Google warning that swift enforcement is needed or some of their businesses may not survive". (November 12, 2020)
  9. "A flagship framework for gathering Internet users consent for targeting with behavioral ads which is designed by ad industry body, the IAB Europe fails to meet the required legal standards of data protection, according to findings by its EU data supervisor". (October 16, 2020)
  10. "Googles appeal against an order by Frances competition watchdog to negotiate with publishers for reuse of snippets of their content has failed". (October 8, 2020)
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