Google's $2.1 Billion Fitbit Deal Faces Full-Scale EU Antitrust Investigation (cnbc.com) 12
According to CNBC sources, Google's $2.1 billion bid for fitness tracker maker Fitbit will face a full-scale EU antitrust investigation next week. From the report: Alphabet unit Google this month offered not to use Fitbit's health data to help it target ads in an attempt to address EU antitrust concerns. The opening of a full-scale investigation suggests that this is not sufficient. The deal, announced last November, would see Google compete with market leader Apple and Samsung in the fitness-tracking and smart-watch market, alongside others including Huawei and Xiaomi.
The European Commission, which will launch the probe following the end of its preliminary review on Aug. 4, is expected to make use of the four-month long investigation to explore in depth the use of data in healthcare, one of the people said. Google reiterated previous comments, saying the deal is about devices and not data. "The wearables space is crowded, and we believe the combination of Google and Fitbit's hardware efforts will increase competition in the sector, benefiting consumers and making the next generation of devices better and more affordable," a spokeswoman said.
The European Commission, which will launch the probe following the end of its preliminary review on Aug. 4, is expected to make use of the four-month long investigation to explore in depth the use of data in healthcare, one of the people said. Google reiterated previous comments, saying the deal is about devices and not data. "The wearables space is crowded, and we believe the combination of Google and Fitbit's hardware efforts will increase competition in the sector, benefiting consumers and making the next generation of devices better and more affordable," a spokeswoman said.
Doesn't seem like anti-trust applies here (Score:1)
Google itself is quite large, but FitBit is by no means a dominant player in the wearable fitness space - so I don't see grounds for this. That is, beyond "Hey Google has a lot of money and the EU needs more cash to prop itself up a little longer".
Horizontal monopoly is the problem (Score:5, Informative)
Vertical acquisitions are not the problem. However if the google can use its monopoly power in other areas to convert Fitbit into a dominant monopoly in that horizontal field of activity monitors, that would of course make things worse. However, I would speculate that the google is actually trying to use the high quality personal data from Fitbit to extend its monopoly power in other niches. Basically more dimensions to be added to the models of us lowly human beings. More dimensions means more strings to pull in manipulating us (for advertisers or politicians or whoever).
My favored solution approach is horizontal division driven by a progressive profits tax linked to market share. If any company is too dominant in any market, then it faces the choice of paying the high taxes or dividing itself horizontally to create more choice, more competition, more innovation, and ultimately, more freedom. The high taxes can regulate the company, but dividing it would create higher retained earnings. Even the shareholders win by getting shares in two (or more) companies with higher earnings where they only had one company's shares before.
Getting a bit tangential here, but the google's leverage is related to puling our strings, and this is actually related to the fake news problem. Came to this realization from a discussion of the difference between disinformation and misinformation in a (recommended) recent book called This Is Not Propaganda by Peter Pomerantsev. Both are false, but the disinformation was created to mislead. However I realized the distinction doesn't matter that much because even valid information can be used if you know which strings to pull. This person isn't going to buy into misinformation, eh? Can't even concoct disinformation that would be swallowed? Okay, find a different string and feed valid information to change priorities and redirect into harmless territory... It's all in knowing the target these days.
Competition (Score:2)
Google is 100% about data and has been caught multiple times breaking agreements or circumventing blocks
These large companies are ALL too big, they should no longer be allowed to buy up companies to get a foot hold in a market space.
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Mark of the Beast (Score:3)
It's harder to put down your watch than your phone. Having direct access to the watch's data will increase the accuracy and granularity of their location data.
Re: Mark of the Beast (Score:2)
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Do Fitbit devices even have GPS? Looking at their website none of them seem to have GPS built in, they all rely on your phone recording location. All they have is Bluetooth LE which won't be much use for tracking unless they hide beacons in public spaces where people go jogging. Seems a bit far-fetched TBH.
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Your location can be triangulated by wifi alone in most places. It doesn't seem that far-fetched for it to work with Bluetooth as well. They don't need to hide beacons anywhere. They just need to log the beacons that are already there, and cross-reference it with the GPS/wifi/cellular positioning they get from everyone else's phone. They have so many layers of background data to draw from that they might not need more than a flickering of Bluetooth to come in range.
Of course, none of that means they won't a
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As long as they don't plan to operate in the EU then the EU won't get a say. Are they planning to leave the EU market?
The same rules apply everywhere. Why do you assume they don't? You don't think America and China get to also approve EU mergers?
These things already happen. You really need to join us in reality.