Google’s acquisition of Fitbit is being held up by a few antitrust organizations around the world.
Last November, Google made the first steps towards buying the popular smartwatch and fitness tracking company for $2.1 billion USD ($2.8 billion CAD). However, the European Commission and the Australian Competition and Consumer Commission are holding up the purchase.
The main concerns of the investigations revolve around reduced competition in the wearable space and the fact that Google would be gaining all of Fitbit’s user data.
The European Commission’s ruling on the deal should arrive on July 20th, while Australia’s antitrust board is warning against the deal, but won’t pass judgment until August.
Google told Reuters that its acquisition of Fitbit is hardware-focused, not data-focused, which is probably true since Fitbit makes very popular wearable devices, and Google doesn’t currently manufacture any. Yet, it does provide the software for numerous other smartwatches from brands like Fossil and Misfit.
Neither Fitbit nor Google are within batting distance of the Apple Watch on their own, so there’s a chance that if Google can combine its software and its hardware (with Fitbit’s help), it can catch up to Apple’s excellent wearable.
However, at this rate, it’s unclear if Google’s acquisition of Fitbit will go through.