While most eyes are on the close-to-collapse Brexit negotiations, another notable European decision is finally expected this week.
Google’s proposed $2.1 billion takeover of Fitbit naturally caught the attention of the European Union—which continues to tighten its screws on “big tech” over privacy concerns.
According to Bloomberg’s sources, the EU will grant conditional approval for Google’s historic takeover this week.
We don’t know what conditions Google has agreed to in order to appease the EU’s concerns, but it may be along similar lines to commitments made to Australia’s Competition & Consumer Commission (ACCC).
Last week, the ACCC published (PDF) that Google had agreed to the following:
- Not use certain user data collected through Fitbit and Google wearables or input manually by consumers, for Google’s advertising purposes for 10 years (with an option for the ACCC to extend this obligation for up to a further 10 years).
- Maintain access for third parties, such as health and fitness apps, to certain user data collected through Fitbit and Google wrist-worn wearables for 10 years.
- Maintain access to Android APIs that enable interoperability between third party wearables and Android smartphones for 10 years.
Google first announced its plan to acquire Fitbit in November 2019 saying that it would use the brand’s expertise to bolster its own smartwatch business.
Fitbit acquired Pebble in 2016 to boost its own in-house talent, a company which helped to kick off the smartwatch race with a $10.3 million Kickstarter campaign in 2012. This was followed by setting a crowdfunding record in 2015 by raising $20.3 million for the Pebble Time and Time Steel.
The smartwatch efforts of Google have fared poorly; especially compared to the resounding success of the Apple Watch. Part of the reason for the poor performance of WearOS is the platform has been stuck with ageing wearable processors from Qualcomm—something which is only now being rectified.
The intention to purchase Fitbit shows that Google still has confidence in smartwatches and believes it can bring some healthy competition to a space which has been largely dominated by Apple.
Fitbit brings plenty of wearable talent and experience into Google’s fold which should put Apple on notice that it might not have it so easy in the years to come.
Update: The acquisition has now been approved by the EU.
(Photo by Katya Austin on Unsplash)
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