AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Summary
- Google confirms acquiring the fitness wearable provider Fitbit at USD 2.1 billion.
- The regulatory authorities probe on the deal concerning data privacy is still going on.
- Google and Fitbit have maintained that users' data will remain protected and not be used for Google ads.
The market leader in the online advertising business, Alphabet-owned Google, has completed the health device producer Fitbit's acquisition worth USD 2.1 billion.
Image source: pixabay
The mega-company announced it on 14 January 2021. The deal is closed amid the ongoing probe by both the US and Australian competition regulators. The regulators are concerned if Google will use Fitbit users' data to help personalise advertisements, further expanding Google's market position.
Google has been trying since long to make a mark in the Android Wear/OS. The efforts began in late 2019 when the company acquired Timex smartwatch technology for USD 40 million for competing with Apple Watch directly. Unfortunately, the product could not compete fairly against Apple. Now with Fitbit deal, the company has got an established health tracker wearable company.
Fitbit, since it was founded in 2009, has sold nearly 120 million devices in 100 countries. Google's main revenue source is the money it gets by selling advertisements based on users' information. The Justice Department, though objecting the deal has not filed any formal complaint yet. The critical concern is that the acquisition will give Google more access to people's data. Google, meanwhile, has maintained that it is ready to face any further questioning by the department.
Must read: Google Partnership sends Splitit Payments’ share price flying high
The deal is about devices, not data: Google
As a response to these concerns, while announcing the deal's completion, Google has also stated that they are only looking for the hardware part. The company assures that they are clear from the beginning that the Fitbit users' data will be protected and will not be used for Google ads. The mega search company said the company has worked with global regulators to ensure its data remains safeguarded.
Google also said that both the experts coming together would shape up the health and wellness market. The merge will drive the competition in wearable space and will also make the next generation devices better at much affordable price ranges. The combination will integrate Google's AI, software and hardware with Fitbit's product expertise, leading technology and innovation in the health and wellness space.
Also read: Google services’ global outage: Here’s what exactly happened?
Fitbit echoes the sentiments: In its letter to customers, Fitbit's CEO James Park has also shown similar sentiments and said that joining hands with google gives the company more power to inspire and motivate users in their journey to achieve better fitness. As per him though the opportunities will increase, the company will retain its specialities and ensure data privacy and security protections. Google is also expected to retain 1,800 employees of Fitbit.
Also read: ACCC indicates potential legal cases against Facebook, Apple, and Google over ‘ad tech’
