Justice Department Will Reportedly Review Google’s $2.1 Billion Fitbit Acquisition
Topline: The Justice Department will review Google’s projected $2.1 billion purchase of fitness monitoring firm Fitbit, the New York Post reported Tuesday, placing the search giant at the areas of government watchdogs once as it faces antitrust and information privacy investigations from state and federal regulators.
It’s typical for the authorities to review massive mergers, but the DOJ fought jurisdiction over the bargain because it explores Google for wider anticompetitive behavior, the New York Post reported.
Client groups like Public Citizen and Consumer Federation of America have predicted on the authorities to block the merger since Google currently gathers vasts quantities of data on what users search for and, the groups stated, shouldn’t be permitted to”add still another means to monitor our every movement.”
Google is also under investigation in the Department of Health and Human Services over if it may properly protect health information after Forbes and other outlets reported to a key initiative to construct a search engine to get individual data inside hospitals.
Google declined to comment, but at a blog article about the purchase in November, the business promised to not utilize Fitbit health and health data for advertisements. Fitbit didn’t immediately respond to a request for comment in Forbes.
Essential background: Even though Google’s opponents in the smartphone marketplace –such as Apple, with its Apple Watch merchandise –have made large investments in fitness monitoring, Google does not have a flagship wearable merchandise nonetheless. Fitbit had 12.2percent of the wearables marketplace in 2018, based to Strategy Analytics, followed by Samsung with 11.8percent and Garmin with 7.1 percent.
News peg: Regulators and lawmakers from both parties are inspecting Large Tech–Google, Facebook, Apple and Amazon–for potential anticompetitive acquisitions and clinics. Google specifically has come under fire due to its dominance in the online marketing business and continues to be accused of demoting search results from rivals.