EU Delays Decision on Google-Fitbit Acquisition Antitrust Review

The European Union’s timeline for a decision regarding the Google-Fitbit acquisition has been extended once more, with regulators now scheduled to reach a conclusion by January 8, 2021.

This latest adjustment to the preliminary deadline, initially noted by Reuters, may stem from a request for additional time submitted by one of the involved parties.

The decision deadline was previously moved to December 23, potentially resulting in a review period exceeding one year since Google first announced its plans to acquire Fitbit in November 2019. Should the technology company have anticipated a straightforward and rapid approval process, those expectations have lessened since August, when the Commission indicated a thorough investigation would be undertaken.

The planned acquisition of Fitbit also occurs as Alphabet, Google’s parent company, faces significant antitrust investigation within the United States.

Google was a central focus of a report released earlier this month by the House Judiciary Committee concerning antitrust issues with major technology companies, with US legislators proposing various solutions – including the potential division of large platform businesses.

Similarly, European legislators are currently developing new regulations to govern large ‘gatekeeper’ platforms – a category to which Google would likely apply. A draft of this legislation is anticipated before the close of the year, potentially preceding the EU regulators’ decision on the Google-Fitbit transaction.

Both competitive and data privacy issues have been voiced in opposition to Google gaining access to Fitbit users’ information.

Google has attempted to address these concerns by offering several assurances, stating it will not utilize Fitbit’s health and wellness data for advertising purposes and proposing independent monitoring of data separation protocols. The company has also pledged to preserve access for third parties and competitors to both its Android ecosystem and Fitbit’s application programming interfaces (APIs).

Despite these commitments, competing wearable technology manufacturers have continued to express criticism of the proposed merger. Furthermore, a collective letter was issued earlier this week by consumer advocacy and human rights organizations, urging regulators to approve the takeover only if “remedies can effectively prevent [competition and privacy] harms in both the near and long term”.

It is evident that, with heightened antitrust scrutiny directed at ‘big tech’ companies, the period of uncomplicated acquisitions appears to be over for Google and its peers.