Market Overview

Google Tells EU It Will Not Use Fitbit Data For Targeted Ads

Google Tells EU It Will Not Use Fitbit Data For Targeted Ads

Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG)-owned Google has pledged not to use health data garnered from devices made by Fitbit Inc (NYSE: FIT) for the purposes of serving targeted advertisements in order to secure approval of its acquisition of the fitness tracker company from the European Union.

What Happened: Google’s purchase of Fitbit for $2.1 billion, announced in November last year, would allow it to compete against rivals Apple Inc (NASDAQ: AAPL) and Samsung Electronics Co Ltd (OTC: SSNLF), as well as Huawei and Xiaomi Corp (OTC: XIACF), according to Reuters.

“This deal is about devices, not data. We appreciate the opportunity to work with the European Commission on an approach that safeguards consumers’ expectations that Fitbit device data won’t be used for advertising,” Google said in a statement to Reuters. 

Why It Matters: The EU is scheduled to hold a hearing on the Google-Fitbit deal by July 20. 

The acquisition has drawn the ire of both competitors and privacy activists concerned about Google’s potential to use Fitbit health data to run targeted advertisements.

The EU will invite feedback from Google’s rivals and users before giving its approval to the deal or demanding more concessions, Reuters reported. 

The multilateral bloc could open a four-month-long investigation if its concerns persist. 

GOOG, FIT Price Action: Class A Alphabet shares were down 0.78% at $1,500.41 at last check, while Fitbit shares were trading 2.87% higher at $6.82. 

Photo courtesy of Fitbit. 


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