Google or US $2.1 billion acquisition of Fitbit to compete with apple and Samsung in wearable Market


According to reports, people familiar with the matter said that Google, the company owned by alphabet, is expected to obtain the approval of EU antitrust agency to buy Fitbit, a fitness tracking device manufacturer, for us $2.1 billion, in order to compete with apple and Samsung in the wearable technology market.
Google, the world’s most popular Internet search engine, made another concession to the European Commission on Tuesday in an attempt to dispel concerns that the deal could strengthen Google’s online advertising power and increase its data volume.
Media reports said Google said it had proposed limiting the use of Fitbit data for Google Advertising and would strengthen monitoring of the process.
“We are also committed to long-term support for other wearable device manufacturers on Android and continue to allow Fitbit users to connect to third-party services via API,” Google said in a statement
With the user’s consent, third parties can also continue to access Fitbit users’ data.
Google’s concession will clear the way for the deal to be approved, people familiar with the matter said.
The Commission was due to rule on the deal by December 23, but it may make a decision earlier than the deadline. At present, the Committee declined to comment.
Before deciding whether to accept Google’s concessions, the EU will seek feedback from competitors and customers.
Fitbit used to be a leader in the wearable market. According to International Data Corporation, a market research firm, as of the first quarter of 2020, its share of the global wearable device market was 3%, lagging behind Apple’s 29.3% share and Xiaomi, Samsung and Huawei.