In the latest development, the US internet giant Google has offered not to use the health data of Fitbit, the maker of fitness-tracking devices, to help it target ads in order to address EU antitrust concerns about its proposed US$2.1 billion acquisition deal.
The bid, which was announced in November last year, is likely to help the Alphabet-owned company take on market leaders like Apple and Samsung in the fitness-tracking as well as the smart-watch market, alongside others including Huawei and Xiaomi.
“This deal is about devices, not data. We appreciate the opportunity to work with the European Commission on an approach that safeguards consumers’ expectations that Fitbit device data won’t be used for advertising,” Google said in an emailed statement to Reuters.
The international news agency last week reported that such a data pledge may likely help the tech giant secure EU approval for the deal.
With only 3% of the global wearables market as of the 1st quarter this year, Fitbit lags behind Apple’s 29.3% share and also trails Xiaomi, Samsung as well as Huawei, as per the data from International Data Corp.
However, the deal has drawn criticism from privacy advocates on both sides of the Atlantic, on concerns that the US-based company could use Fitbit’s health data to increase its dominance in the field of online advertising and search.
Sources said the European Commission, EU’s executive branch, is likely to seek feedback from competitors and users before making any decision about giving approval to the deal, demanding more concessions, or opening a 4-month-long investigation if it has grave concerns.