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The European Commission approved the deal between Google and Fitbit

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Miguel A. Rodriguez
Miguel A. Rodriguez
18 December 2020
Google's Fitbit acquisition is subject to conditions

After it was sued in the US for anticompetitive behavior, Google received its approval from the European Commission to acquire Fitbit.

The $2.1 billion deal was first announced in November 2019, and it raised concerns all around the world. So, in August 2020, regulators from Europe and Australia began investigating the American giant over data privacy and antitrust matters.

To get the deal approved in Europe, Google agreed to various concessions meant to ease EU concerns. Some refer to Google's agreement to not use Fitbit's data, including GPS and health data for targeted advertising. On top of that, a technical separation between the two entities must be maintained, giving EEA users the option to approve or deny the use of their fitness data by other services provided by Google such as Maps and the search engine. These and other commitments will be in force for ten years.

According to European Commission Executive VP Margrethe Vestager, "we can approve the proposed acquisition of Fitbit by Google because the commitments will ensure that the market for wearables and the nascent digital health space will remain open and competitive."

At the moment of writing, Google stock price closed 0.86% lower while Fitbit ended 0.56% higher.

Read here more about the class action against Google!

Sources: theverge.com, cnbc.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.