12/17/2020, 2:51 PM (Source: TeleTrader)
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EU Commission approves Google, Fitbit $2.1B deal

The European Commission approved on Thursday Google LLC's acquisition of Fitbit Inc. on the condition of full compliance with the commitments package offered by Alphabet's subsidiary.

"We can approve the proposed acquisition of Fitbit by Google because the commitments will ensure that the market for wearables and the nascent digital health space will remain open and competitive. The commitments will determine how Google can use the data collected for ad purposes, how interoperability between competing wearables and Android will be safeguarded and how users can continue to share health and fitness data," said Executive Vice-President Margrethe Vestager.

Google revealed plans to buy Fitbit for $2.1 billion last year, after which the European Commission launched an "in-depth" investigation into the agreement over possible competition concerns. However, the Commission resolved the issues it had concerning the deal with Google, resulting in the acquisition's approval. The "in-depth investigation did not confirm such [competition] concerns because the digital healthcare sector is still nascent in Europe with many players active in this space," the statement concluded.

Breaking the News / ND