Advocacy groups in the US and the EU warn against the purchase of Fitbit by Google


WASHINGTON (Reuters) – Twenty advocacy groups from the United States, Europe, Latin America and elsewhere signed a statement on Wednesday urging regulators to be wary of Google’s $ 2.1 billion offer by fitness tracker company Fitbit. Inc (FIT.N) for privacy and competition reasons.

FILE PHOTO: The Fitbit Blaze watch is seen in front of the Google logo shown in this illustrated image taken on November 8, 2019. REUTERS / Dado Ruvic / File Photo

The 20 organizations, which include the US-based Public Citizen, Access Now from Europe and the Brazilian Institute for Consumer Defense, argued that the deal would expand Alphabet Inc’s already considerable influence on digital markets (GOOGL.O) Google.

The Fitbit acquisition would give Google as intimate information about users as how many steps they take daily, the quality of their sleep, and their heart rates.

“Past experience shows that regulators should be wary of any promises made by the merged parties to restrict the use of the acquisition target data. Regulators must assume that Google will in practice use the entire highly sensitive, unique and independent Fitbit dataset in combination with their own, ”the groups said.

Australian and Canadian groups were among the signatories.

A Google spokeswoman said the tech wearables space was crowded.

“This agreement is about devices, not data,” he said. “We believe that the combination of Google and Fitbit’s hardware efforts will increase competition in the sector.”

Google announced the deal in November to compete in the busy smartwatch and fitness tracker market. Fitbit’s market share has been threatened by pocket companies like Apple Inc (AAPL.O) and Samsung Electronics Co Ltd (005930.KS)

Australia’s competition authority said this month it may have concerns about the deal and would make a final decision in August.

EU antitrust regulators will decide before July 20 whether they should close the deal with or without concessions or open a longer investigation.

In Washington, Google is under antitrust investigation by the Justice Department, a congressional committee, and dozens of states for allegedly using its massive market power to harm smaller competitors.

Report by Diane Bartz; Editing by Lisa Shumaker

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