Google Fitbit Acquisition Set To Get EU Approval Deal Done By Xmas
Google is believed to have made concessions to European regulators that will see the search giant get approval for their controversial takeover of Fitbit.
The $2.8 Billion dollar deal has been delayed due to data privacy concerns, shares in Fitbit rose 1.5% to US $7.25 on the news despite concerns in Australia about the deal.
The acquisition could be approved as soon as next week after national competition authorities passed on their opinion in favour of the deal according to sources. The EU usually consults the so-called advisory committee on mergers days before it issues approval claims Bloomberg.
Google announced its plans to buy Fitbit in November 2019, noting that it would use the smartwatch maker to improve its lagging hardware business.
Clearing regulatory obstacles for the deal come in a tough climate when the company is facing mounting scrutiny including Australia with the Australian Competition and Consumer Commission currently investigating the impact of such a deal.
While Google has agreed to concessions to allay EU antitrust concerns about its move into wearable fitness devices, its final pledge to European authorities hasn’t been disclosed.
The ACCC on Monday published an offer from Google that looks similar to the European commitments according to insiders.
Google pledged to Australia that it would maintain health and fitness apps’ access to Google and Fitbit data and ensure Android phones could keep working with other wearable devices for 10 years.
Ruth Porat, chief financial officer at Google parent Alphabet Inc., has said the company anticipates its bid for Fitbit Inc. will be completed this year.