The Morning Call

Google’s plan to buy Fitbit under study by EU

- By Kelvin Chan

LONDON — European Union regulators opened an in-depth investigat­ion Tuesday into Google’s plan to buy fitness tracking device maker Fitbit.

The EU’s executive commission said it was concerned the deal would entrench the U.S. tech giant’s position in the online ad market by “increasing the already vast amount of data” the company uses to personaliz­e ads.

“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,” said European Commission Executive Vice President Margrethe Vestager, who also is the EU’s competitio­n commission­er.

Google agreed to buy Fitbit in November for $2.1 billion. Privacy, social justice and consumer groups have called on authoritie­s to block the deal, citing privacy and antitrust concerns.

The EU said the deal could expand Google’s “data advantage” and raise barriers for rivals to match Google’s online advertisin­g services.

“This deal is about devices, not data,” said Rick Osterloh, Google’s senior vice president for devices and services. “We’ve been clear from the beginning that we will not use Fitbit health and wellness data for Google ads,” he wrote in a blog post.

The probe underscore­s the lead role EU authoritie­s have taken in global efforts to regulate the big technology companies. Vestager has been at the forefront of the movement to rein in Google and its Silicon Valley rivals. During her first five-year term as competitio­n commission­er, she slapped Google with nearly $10 billion in penalties for multiple antitrust cases involving its Android operating system, advertisin­g business and shopping service.

Critics say big fines failed to change how tech giants behave and have called on regulators to take tougher action.

The EU commission has until Dec. 9 to decide on whether to approve the deal.

In an effort to allay apprehensi­on, Google offered to put all informatio­n collected from wearable devices into a virtual data silo. But the overture wasn’t enough to satisfy the European Commission, which said the proposal wouldn’t cover all the data Google could access as a result of the acquisitio­n.

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