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Australian regulator says Google’s $2.1 billion Fitbit deal could harm competition

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HomeLatest Platform NewsInternet of Things (IoT)Australian regulator says Google's $2.1 billion Fitbit deal could harm competition

Australia’s antitrust regulator, the ACCC warned Google’s planned $2.1 billion acquisition of fitness tracker maker Fitbit may give it too much of people’s data, potentially hurting competition in health and online advertising markets.

KEY POINTS:

  • Anti-trust regulators in Australia warn that Google’s planned $2.1 billion acquisition of fitness tracker maker Fitbit may give it too much of data
  • The Australian Competition and Consumer Commission suggest that any acquisition could increase the barriers to entry and thus stifle the landscape
  • Google want to be able to compete with Apple and Samsung and create new data sets

The Australian Competition and Consumer Commission is the first regulator to voice concerns about the deal, which come at a time when the Alphabet Inc-owned tech giant is at loggerheads with the Australian government over planned new rules about how internet companies use personal information.

“Buying Fitbit will allow Google to build an even more comprehensive set of user data, further cementing its position and raising barriers to entry to potential rivals,” ACCC Chairman Rod Sims said in a statement on Thursday.

USER DATA

“User data available to Google has made it so valuable to advertisers that it faces only limited competition,” he added.

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The regulator said its concerns were preliminary and it would announce the outcome of its review on the 13th of August.

A Google spokeswoman declined to comment, while a Fitbit representative was not immediately available for comment.

Google wants the deal, which it announced in November, to help it compete with Apple and Samsung in the market for fitness trackers and smart watches.

But consumer groups have urged regulators to scrutinise it closely due to privacy concerns. The US Justice Department is evaluating the deal, while the European Commission is due to give a ruling in July.

The ACCC does not generally have the power to block a deal outside Australia. In previous takeovers, it has ordered certain conditions such as asset sales.

Following an ACCC report last year, the government is working on new rules to make large internet companies disclose their data usage, and pay for the local media content they use. Google and Facebook Inc oppose most of the proposed changes.

The team at Platform Executive hope you have enjoyed the ‘[post_title]’ article. Automatic translation from English to a growing list of languages via Google AI Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Byron Kaye in Sydney and Shashwat Awasthi in Bengaluru. Editing by Kim Coghill and Edwina Gibbs.

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