Fears Google will harvest intimate health data of Fitbit users giving the tech giant unrivaled details on your sleep patterns and walking habits are raised by Australia’s watchdog
- Google is making a $US2.1 billion acquisition of Fitbit announced in November
- Australia’s competition watchdog has shared concern about the deal
- ACCC is concerned user’s data will be used to strengthen Google’s dominance
Google could strengthen their already dominant market position by harvesting intimate data of Fitbit users, Australia’s competition watchdog fears.
The Australian Competition and Consumer Commission (ACCC) is concerned the tech giant’s $US2.1 billion acquisition of the fitness company will come at the cost of user’s privacy and data.
Fitbit, which produce activity trackers and smartwatches, have collected customer’s health information, including daily step counts, heart rate and sleep data, for more than 10 years.
The Australian Competition and Consumer Commission (ACCC) is concerned Google’s $US2.1 billion acquisition of Fitbit will come at the cost of user’s privacy and data. Pictured: A woman exercising while wearing a Fitbit
The ACCC announced on Thursday they will work with competition authorities overseas to review the transaction, which was proposed in November last year.
ACCC Chair Rod Sims said past acquisitions by Google have ‘further entrenched’ the technology company’s position.
‘Our concerns are that Google 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,’ he said.
‘The ACCC’s Digital Platforms Inquiry found that Google’s substantial market power is built on its concentration of search and location data, and data collected via third-party websites and apps.’
‘The access to user data available to Google has made it so valuable to advertisers that it faces only limited competition.’
Mr Sims acknowledged it was a rapidly evolving sector but said the competition regulator cannot conclude there will be no lessening of competition because the future remains unclear.
The ACCC announced on Thursday they will work with competition authorities overseas to review the transaction, which was proposed in November last year. ACCC Chair Rod Sims (pictured) said: ‘Our concerns are that Google 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’
‘Our position is where there is uncertainty, especially surrounding such important markets, the ACCC must thoroughly investigate the potential for an acquisition to stymie future competition,’ he said.
‘As a competition regulator it is our job to weigh carefully the potential issues concerning data and advertising that may follow transactions such as these.
‘We will work very closely with other competition authorities in other jurisdictions that are also reviewing this transaction.’
The ACCC said they are seeking submissions from market participants and will make a decision on Google’s purchase of Fitbit on August 13.
Fitbit announced it entered an agreement to be acquired by Google for US$2.1 billion on November 1, 2019.
Fitbit (pictured on the woman’s wrist), which produce activity trackers and smartwatches, have collected customer’s health information, including daily step counts, heart rate and sleep data, for more than 10 years