Consumer, advocacy groups seek to block Google-Fitbit merger
IN November, Google’s parent company Alphabet acquired FITBIT, A WEARABLE fiTNESS COMPANY for a reported $2.1 billion. It’s not a done deal, however, as consumer and advocacy groups raised legal and ethical issues over that acquisition this year.
Google is the most popular Internet search engine today, while Fitbit is in the fast-rising wearable industry that produces smartwatches and electronic trackers THAT MONITOR fiTNESS AND HEALTH. In 2019, the number of active users of Fitbit products grew to 29.6 million worldwide.
The wearable industry has taken a hit from the coronavirus disease 2019 (Covid-19) pandemic, but it is expected to bounce back once the world recovers from the ongoing health crisis and people take their health more seriously than ever.
British charity Privacy International is the latest joining the chorus of voices around the world that wants the merger scrutinzed more closely with regard to its potential adverse impact on privacy rights, business competition and transparency.
In a recent call, Privacy InterNATIONAL NOTIfiED THE EUROPEAN Commission that a Google-Fitbit merger would further contribute to Google’s digital dominance that could put at risk some freedoms being enjoyed in the online space.
The major concerns are:
– The Google search engine is already a dominant market player in the business of data collection, and given the importance of data today, the concentration of personal information of Fitbit’s customers in Google may violate anti-trust laws.
– Google has been acquiring health- and pharma-related companies, and the health and biometric data of Fitbit customers may be compromised in ways other than those provided for in the terms of the merger.
– The European Union puts a premium on placing a high level of protection on health data, and the track record of Google in this aspect does not speak well in light of “a 50- million- euro fine from the French data protection regulator for violating data protection law in 2018 ( under appeal).”
The world must stand up against digital dominance to protect people’s rights and prevent CONGLOMERATES TO TURN A PROfiT ON sensitive, personal data.
If the merger is approved, there’s the added worry that intimate personal data could be used TO GENERATE WINDFALL PROfiTS FROM advertising. In 2018, Google made $80 billion in revenue reportedly from targeted ads.
The US Department of Justice is bent on reviewing the megadeal, focusing mainly on the question whether the merger violated antitrust laws. The fact is, the search engine giant has few competitors and antitrust laws bar any merger that lessens competition. The capitalist mindset dictates that competition drives progress and progress yields better products and services.
The early feedback from Fitbit customers generally speak of disMAY THAT THEIR CONfiDENTIAL PERsonal data would be owned and tracked by Google. Some even wrote that they never shared information on their email accounts and they now feel uncomfortable doing just that with their intimate Fitbit data going to the search engine.
A minority are happy with the consolidation, expressing hope that they would get more insights on their data than those currently provided by Fitbit.