Google has secured clearance from the European Commission for its takeover of Fitbit, after agreeing to limits on how it can use data collected over Fitbit wearables. The conditions will apply for ten years and may be extended further if needed to protect competition, the Commission said.
Google announced the proposed takeover of Fitbit for USD 2.1 billion in November 2019. Since then it has faced intense scrutiny from regulators in the EU, US and Australia, with no major market approving the deal yet. Regulators are concerned the acquisition could give the company an unfair advantage on the emerging market for health data, given Google's already extensive access to personal data through its search and Android platforms.
The company volunteered to restrict its use of Fitbit data in order to secure regulatory clearance in Europe, and the European Commission said the company's commitments were "significantly improved" based on market feedback it collected.
As a result, Google may not use health and wellness data from Fitbit wearables for any of its advertising services and must make sure Fitbit users have a clear choice to opt in or deny the use of their data by other Google services, such as Maps or Assistant. Google will have to maintain a 'data silo' for Fitbit data, keeping it separated from the company's other databases.
In addition, Google must continue to offer the Fitbit Web API with no change in conditions. This is to ensure it does not restrict third-party access to the Fitbit platform and other providers can develop health and related services for the Fitbit users.
Finally, Google may not favour Fitbit and limit interoperability of other wearables with Android smartphones. The company must continue to license for free to Android OEMs APIs covering all the core functionalities that wrist-worn devices need to interoperate with an Android smartphone. This includes connecting via Bluetooth to an Android smartphone, accessing the smartphone's camera or its GPS. Any improvements of those functionalities and relevant updates are also covered.
An independent trustee will be named to monitor Google's compliance. They will have extensive access to Google data and systems and be able to share the information with the Irish Data Protection Commissioner, which is in charge of Google Europe's compliance with privacy regulations.
