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The European Union approved the purchase of Fitbit by Google

The European Union approved the purchase of Fitbit, a manufacturer of so-called smart bracelets, smart watches and other products, by Google for 2.1 billion USD (1.71 billion euros), but with conditions.

The European Union approved the purchase of Fitbit by Google
Yazar: Tom Roberts

Yayınlanma: 18 Aralık 2020 20:37

Güncellenme: 3 Kasım 2024 11:56

The European Union approved the purchase of Fitbit by Google

The European Union approved the purchase of Fitbit, a manufacturer of so-called smart bracelets, smart watches and other products, by Google for 2.1 billion USD (1.71 billion euros), but with conditions. The European Commission set several conditions that Google must comply with for at least 10 years. For example, it must not be able to use health data from Fitbit products for advertising in the European Economic Area (EEA), which includes Iceland, Liechtenstein and Norway in addition to EU Member States. The Commission also calls for a technical separation of Fitbit data from Google data. At the same time, human rights groups and consumer groups have called on the EU authorities to block the agreement. Privacy reasons and antitrust laws were cited as reasons. The agreement has also been scrutinized by regulatory authorities in Australia, which are considering similar conditions. Google added that it "worked constructively" with EU regulators to address their concerns, including a set of legal commitments accepted by the European Commission. Google accepted these commitments after the Commission began investigating its agreement with Fitbit. The EU initially feared that the agreement would extend Google's "data benefits" and raise barriers for rivals in the online advertising industry. However, European Commissioner for Competition Margrethe Vestager eventually approved the agreement because Google's commitments "will ensure that the market for wearable devices and the emerging digital health space remain open and competitive". "The commitments will determine how Google can use the collected data for advertising purposes, how interoperability between competing devices and Android will be ensured, and how users can continue to share health and fitness data if they so choose," she said. The EU has approved the agreement at a time when it is preparing to implement far-reaching digital reforms aimed at the business models of large US technology companies. The Union wants technology giants to take greater responsibility for illegal content and goods distributed on their platforms.
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