The top antiturst regulator in the European Union is planning to launch a new probe into Google's recent acquisition of fitness tracking device company FitBit. The European Commission announced on Tuesday that it will be launching an in-depth antitrust investigation into the transaction.
The launch of the probe comes amid increased concerns over Google's continually growing marketing position in the online advertising space. According to the European Commission, Google's acquisition of FitBit could further increase the company's unfair advantage in the space as it could technically gather even more data following the acquisition. Data gathered from Fitbit users could be utilized to further personalize ads within Google's vast ecosystem.
Google originally announced plans for acquiring Fitbit back in November of last year. The deal, which is estimated to be worth more than $2.1 billion, is Google's largest acquisition ever. The acquisition is meant to expand the company's exposure to the rapidly growing smartwatch and wearable tech sector.
The European Commission had previously launched a preliminary investigation into the transaction last year. However, the antitrust agency determined that Google's commitment to not use FitBit data for its advertising database and calculations was insufficient in addressing the underlying concerns identified during the initial investigation.
The head of the EU's top antitrust regulator, Margarethe Vestager, mentioned in a statement that the goal of the in-depth investigation is to property determine whether or not Google's acquisition will distort competition. She added that the amount of data generated by European consumers using wearable devices is expected to balloon over the next couple of years. The increased data could be used by Google as an unfair advantage over its competitors.
Google's Senior Vice President for Devices and Services, Rick Osterloh, mentioned in a statement that the acquisition of FitBit is only about "devices, not data." He added that Google had been very clear from the beginning that it has no intention of using the health-related data collected from Fitbit devices for advertising. Osterloh also pointed out that Google had offered to sign a legally binding contract with the EU regulator involving the use of FitBit data. The proposed agreement will reportedly include a stipulation that will require Google to give users an option to review and delete their data.
The planned probe into Google's acquisition is the latest in the growing global scrutiny on big tech companies. Last week, heads of major tech companies such as Apple, Amazon, Facebook, and Google testified in front of lawmakers in the United States.
