Google is one of those companies that strive to constantly grow. One of the ways of such development is the emergence of new gadgets. But apart from the hardware, the company is also working towards promoting its software. To do this, she does a lot of research, but sometimes she just buys ready-made solutions. One of those decisions was to buy FitBit. The same FitBit, which stood at the origins of the emergence of wearable electronics as a class of devices. But not everyone was happy with such a deal, and European legislation was especially opposed to it. The company had to get the EU approval for such a deal, and now, apparently, the company is as close as possible to its completion. Why does she need it? What will change for us as users? When can the deal take place?
Reuters reported this week that Google’s FitBit deal must receive European Union approval before it can be made. This came as a surprise to few, given the attitude towards Google as the most important monopolist of our time.
The deal has been under scrutiny since November 1, 2019, when Google’s intention to acquire the company was officially announced. The corporation has faced antitrust issues, mostly related to the “inheritance” of Fitbit user data, but the report says it has taken steps to allay the concerns of the European Commission.
Given Google’s commitment to making the deal happen, and the way it sometimes makes concessions, such as search engine choice, its proactive approach in this regard is generally understandable. This could be a great stimulus for her in development and attempts to complete the purchase process are quite logical.
What Google is Doing to Develop Services
For starters, Google reportedly proposed limiting the use of data from Fitbit services. The report also says that Google has proposed making its Android API more accessible to companies looking to build wearable hardware on the platform.
The European Commission now needs to make a decision. She must understand whether she is ready to agree to the transaction on such terms or whether Google has not taken enough steps, as they say, halfway. If a second decision is made, Google will still have to think about how it can accommodate European legislation. On the other hand, the company has already agreed to use third-party search engines and its current step should play exclusively in its favor.
Since the commission cannot instantly give an answer to the question of whether it is possible to conduct a transaction, it needs to familiarize itself with all the facts, Google’s proposals, and the data that the company provided. This commission will take more than two months. She must make her decision and announce it before December 23 of this year.
If all goes well and the officials are satisfied with Google’s arguments, the deal will be given the green light and Google will be able to celebrate the victory, since such a decision will be a real gift for it. By purchasing FitBit, she can greatly improve the quality of the services provided.
Shopping for FitBit
Fitbit is a very good buy for Google. This is largely due to the fact that the company is very far behind other participants in the wearable electronics market. In particular, Apple, Xiaomi, and Samsung can be noted among them. The gadgets and fitness technology of these manufacturers have reached far greater heights than what, if any, Google has in its arsenal.
In addition, again, a company can get a huge amount of user data that can help it earn even more from advertising, making it more targeted and increasing its efficiency. On the other hand, the promise to restrict data usage will prevent you from doing this right now. However, Google will still get a powerful tool to further collect data and use it for advertising. Even if “at the entrance” there is nothing about users at all, then the company will pick up what it needs.
But even without this, the deal will allow the company to get a powerful tool for the further development of its direction of wearable electronics. This, in turn, will bring additional money to the company.
It is too early to say that the deal will be 100% complete, but given Google’s commitment and how actively it is willing to make concessions, it seems that it will achieve its goal and meet the requirements of European legislation. In the end, as we have already determined, if successful, the victory will bring the company far more success than some concessions. That is why the success of the deal is much more likely than its failure.