Brussels (AFP)
The European Commission announced on Tuesday the opening of an "in-depth investigation" into the proposed takeover by Google of Fitbit, a specialist in connected objects for physical activities, fearing that it would strengthen the position of the American giant in the online advertising market .
The Commission "fears that the proposed transaction will further strengthen Google's position in online advertising markets, by increasing the already large volume of data that Google could use to personalize the advertisements it offers or displays ", indicates the European executive in a press release.
"Our investigation aims to ensure that at the end of the transaction, Google's control over data collected through portable devices will not distort competition," said Margrethe Vestager, Executive Vice President of the Commission responsible competition policy.
She stressed that the use of connected objects "should increase considerably over the coming years" and be accompanied "by an exponential growth in the data generated by these devices". "These data provide essential information on the life and health of the users of these devices," she noted.
The number one search engine had announced in early November 2019 the acquisition of Fitbit, one of the world leaders in connected objects specializing in activities related to sport and well-being, for $ 2.1 billion, the transaction ahead of be concluded in 2020.
But this takeover has raised fears, on the part of consumer organizations and the European regulator of personal data, who see it as a threat to the confidentiality of this data and a risk of increasing the dominant position of the American giant.
The acquisition was notified on June 15 to the European Commission, guardian of competition in the EU.
The European executive now has until December 9, 2020 to make its decision.
The American giant had tried to allay the fears of the Commission on July 13, by committing to create a system in which "certain data collected by means of portable devices would have been kept separate from other series of data held by Google". The isolated data "would have been prohibited from use by Google for advertising purposes".
"However, the Commission considers that the commitment concerning the data silo proposed by Google is insufficient to completely remove the serious doubts identified at this stage with regard to the effects of the operation," the statement said.
© 2020 AFP