If you’re a Fitbit user, should you be worried about Google’s acquisition of Fitbit? Read below to find out more.
In 2019, Google revealed that it’s going to purchase Fitbit for $2.1 billion. But data concerns and competition caused a delay in the acquisition.
Furthermore, the European Commission launched an investigation about this deal last year causing further delay.
One main reason the commission investigated it is that of the growing concerns that Google would use a huge amount of user data for its ad targeting platform.
The investigation also sought to find its effects on the digital health industry.
But Google insisted that the deal is not about ad targeting, rather it’s about hardware. Google competing with Apple in the wearable category isn’t a success. But the deal may change it.
Google promised to protect the privacy of Fitbit users. It confirmed that it won’t be using users’ health and wellness data in its Google ads.
Some Fitbit users are worried that they might not be able to connect to third-party services. However, Google clarified that users can still do so. In that case, they can still sync their health and fitness apps with their Fitbit account.
Google assured that it’s going to continue working with the regulators to guarantee that it will live up to its commitments.
Over the past 10 years, the levels of data collection by wearables increased significantly. Fitbit and Apple want their products to be considered as medical devices. They didn’t just work with insurance companies but they also sought clearance from the FDA.
The $2.1 Billion Deal
Before the EU agreed to the acquisition, Google agreed that it won’t use Fitbit data for its ad targeting for 10 years. The Commission can extend it by another 10 years.
When you visit Google Store today, you’ll find that Google is now telling its consumers about acquiring Fitbit. The announcement has a prominent link to the Fitbit product page, where you can find a list of smartwatches and fitness trackers.
Fitbit also offers branded track jackets.
It’s not clear yet whether or not consumers can buy Fitbit products directly from Google Store. But it may be going to add and sell Fitbit products in the Store.
Google, on the other hand, struggled to penetrate the wearable market. That’s why when it saw that opportunity to purchase Fitbit, it took that chance.
Apple Watch isn’t only a massive hit. But it has opened a lot of doors for Apple to offer various health-related products and services, like Fitness+.
The recent CES proved that home workouts are a huge deal because a lot of people want to work out from home.
On another note, the US Department of Justice clarified that it’s still investigating Google’s intention on acquiring Fitbit as it may harm consumers and competition in the US. The government agency will continue to conduct its thorough and efficient review as possible.