Google completes Fitbit acquisition; Everything you need to know

In November 2019, Google acquires smart wearables brand, Fitbit. To create health and wellness more accessible to more people, the acquisition marks Google's major entry into hardware technology. The transaction has completed, Google stated in a recent blog-post.

The $2.1 billion deal’s completion comes with many concessions and commitments from Google. The EU, in particular, has demanded several deals from Google to give a go sign on the deal. It said, “The commitments will determine how Google can use the data collected for ad purposes, how interoperability between competing wearables and Android will be safeguarded and how users can continue to share health and fitness data, i.e if they choose to.”

Will Google use Fitbit user data for personalised ads?

Talking about the privacy concerns, Rick Osterloh, Senior VP, Devices & Services said, “Similar to our other products, with wearables, we will be transparent about the data we collect and why. We will never sell personal information to anyone. Fitbit health and wellness data will not be used for Google ads. And we will give Fitbit users the choice to review, move, or delete their data.”

On similar lines, Fitbit co-founder and CEO James Park said, “The trust of our users will continue to be paramount. We will maintain strong data privacy and security protections, giving you control of your data and staying transparent about what we collect and why. Google will continue to protect Fitbit users’ privacy and has made a series of binding commitments with global regulators. It confirms that it won't use Fitbit users’ health and wellness data for Google ads and will keep this data separate from other Google ad data.”

Undue market advantage?

Many healthtech brands have voiced their fear of Google already having a significant presence in the digital healthcare sector. They have also stated that Google may obtain a competitive advantage in this sector. In fact, Google's and Fitbit's databases to such a degree won't let competitors compete. Further, in late 2019, Google had also acquired Timex smartwatch technology for $40 million.

The EU said, “The Commission's in-depth investigation did not confirm such concerns because the digital healthcare sector is still nascent in Europe with many players active in this space. Moreover, Fitbit has a limited user community in the fast-growing smartwatch segment.” Thus, they have put the matter to rest.

The company will, and all its team will join Google under Fitbit name only.