UPDATED 19:29 EDT / DECEMBER 10 2019

POLICY

US Justice Department to probe Google’s acquisition of Fitbit

Google LLC is set to face yet another antitrust investigation amid reports today that the U.S. Department of Justice is planning to review its proposed $2.1 billion acquisition of the wearable fitness tracker device company Fitbit Inc.

Google announced its plans to buy Fitbit in November. At the time it was announced, analysts said it would allow Google to take on rivals Apple Inc. and Samsung Electronics Co. Ltd. in the crowded fitness tracker and smartwatch market.

But Reuters said watchdogs that include the Center for Digital Democracy and Public Citizen have raised concerns about the deal. They apparently want regulators to block it on concerns that it will give Google access to even more data about American citizens.

Google declined to comment on the report, instead pointing to a statement by hardware chief Rick Osterloh in November, who insisted there were no plans to use Fitbit data for advertising purposes.

The proposed acquisition has already sparked fears among Fitbit customers, with reports emerging last month that several users were planning to ditch its devices due to concerns that Google might misuse their data.

Google is already under intense pressure from antitrust investigators in the U.S. The company is the target of a much broader probe by the DOJ and is subject to a separate investigation by attorneys general in 48 U.S. states, which are looking into its alleged “monopolistic practices” in digital advertising and search.

Meanwhile, Google’s planned acquisition of business intelligence firm Looker Data Sciences Inc. is the subject of another probe by the U.K.’s Competition and Markets Authority.

Constellation Research Inc. analyst Holger Mueller told SiliconANGLE that it’s a good thing that government oversight bodies are working keep companies like Google in check and protect consumer rights and privacy. However, he said he was concerned because rival firms such as Apple collect just as much data from consumers through their own wearable devices.

“It’ll be interesting to see if a veto or restrictions are applied, and how these will be justified,” Mueller said.

Photo: Niharb/Flickr

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