Business
| Jan 14, 2021

Google closes deal to buy Fitbit as Justice Dept probe continues

/ Our Today

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Fitbit Blaze watch is seen in front of a displayed Google logo in this illustration picture taken, November 8, 2019. (File Photo: REUTERS/Dado Ruvic)


WASHINGTON (Reuters)

Search and advertising giant Google has closed its deal to buy Fitbit, the companies said on Thursday (January 14), even as the Justice Department said it was continuing its probe of the US$2.1 billion transaction.

The Justice Department, which sued Alphabet Inc’s Google in October for allegedly violating antitrust law in its search and search advertising businesses, said it “has not reached a final decision about whether to pursue an enforcement action” regarding the Fitbit deal.

Google had said it was buying Fitbit, which makes a watch-like device to measure physical activity, as a way to enter the devices market and was hoping to address privacy concerns.

Fitbit Blaze watch is seen in front of a displayed Alphabet logo in this illustration picture taken November 8, 2019. (File Photo: REUTERS/Dado Ruvic)

“We worked with global regulators on an approach which safeguards consumers’ privacy expectations,” Google said in a blog post, which said Fitbit had 29 million active users.

“(That includes) a series of binding commitments that confirm Fitbit users’ health and wellness data won’t be used for Google ads and this data will be separated from other Google ads data.”

While Alphabet is best known for a free service, its market-leading Google search engine, it has many other businesses, including online advertising services, audio device and thermostat maker Nest, video company YouTube and self-driving car company Waymo.

The logo for wearable device maker Fitbit Inc. is displayed on a screen on the floor of the New York Stock Exchange (NYSE) as the company begins public trading in New York, U.S., October 28, 2019. (File Photo: REUTERS/Brendan McDermid)

Google won EU antitrust approval last month for its Fitbit bid after agreeing to restrictions on how it will use customers’ health-related data.

Google’s plan to buy Fitbit immediately raised concerns when it was announced in late 2019 because of its already rich trove of data about people, what they buy, where they travel, and more.

Fitbit’s fitness trackers and other devices monitor users’ daily steps, calories burned and distance traveled. They also measure floors climbed, heart rate, and how long and how well people sleep.

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