EU antitrust enforcers are asking stakeholders whether Google’s pledge not to use Fitbit creator Fitbit’s health data for its ads and to separate the dataset from its own could alleviate concerns about it crashing.
Alphabet’s Google pledged to the European Commission late Monday to try to address concerns that the $ 2.1 billion acquisition of Fitbit could increase its impact on online advertising and search. The EU executive now asks for feedback from rival wearable device manufacturers, app developers and other online service providers and healthcare providers before deciding to accept the offer, demand more or open a full investigation.
While the feedback is important, sources had already told Reuters that the data breach could address concerns about competition in the EU and help approve the deal. To shield Fitbit’s health data, Google has proposed setting up a data storage structure consisting of verifiable technical and process controls called Fitbit account data, according to the Reuters EU Questionnaire.
This data is not transferred to a Google account and is also not available for Google ads, while Fitbit is the sole legal data controller, the document said. The Commission asked whether the promise would make it more difficult for rivals to match Google’s services and whether the data protection system was appropriate and effective.
Google’s proposal is valid for five years and is monitored by a trustee. Respondents have until Friday to answer. The Commission decision will be taken on 8 August. With only 3% of the global wearables market as of the first quarter of 2020, Fitbit is far behind Apple’s 29.3% and also behind Xiaomi, Samsung and Huawei, according to data from market research firm International Data Corp.
The Commission asked whether the promise would make it more difficult for rivals to match Google’s services and whether the data protection system was appropriate and effective. Google’s proposal is valid for five years and is monitored by a trustee.
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