Google’s planned $2.1bn (£1.6bn) takeover of smartwatch maker Fitbit will likely be investigated by the European Price.
It comes amid concerns about how successfully being knowledge would possibly per chance maybe strengthen the search engine’s energy in on-line marketing and marketing.
EU regulators are shy the deal would possibly per chance maybe give Google an income over opponents by having secure entry to to knowledge from Fitbit’s fitness trackers that can also additionally be primitive for customized adverts.
The price said: “The records tranquil via wrist-aged wearable units looks, at this stage of the associated price’s review of the transaction, to be a crucial income within the on-line marketing and marketing markets.
“By rising the records income of Google within the personalisation of the ads it serves via its search engine and shows on other web sites, it is miles also extra refined for opponents to study Google’s on-line marketing and marketing products and services.
“Thus, the transaction would elevate obstacles to entry and enlargement for Google’s opponents for these products and services, to the final detriment of advertisers and publishers that would possibly per chance maybe face increased prices and maintain much less preference.”
The price will focal level on on-line search marketing and marketing the put it says Google is dominant in most of Europe and on on-line repeat ads the put it claims the company holds a stable market plan in 20 European international locations alongside side the UK.
The investigation will additionally peep at digital healthcare and whether Google would create it refined for rival wearables to operate with its Android smartphone working procedure.
Google offered remaining November it had reached an settlement to rob Fitbit, a California-primarily based mostly fully company which helped pioneer the fitness tracker market.
Google, whose guardian company is Alphabet, has promised to no longer make exercise of successfully being knowledge tranquil from Fitbit units to focal level on ads and can space it individually in a “knowledge silo”, which is a digital storage of information.
However the EU believes these assurances aren’t ample, because the records the search engine vowed to place within the silo “did no longer quilt your whole knowledge that Google would secure entry to as a results of the transaction and would be treasured for marketing and marketing functions”.
In a blog post, Google has insisted the “deal is set units, no longer knowledge”.
It said: “There is appealing opponents in phrases of smartwatches and fitness trackers, with Apple, Samsung, Garmin, Fossil, Huawei, Xiaomi and a lot of others offering a form of products at a vary of prices. We do no longer within the interim create or promote wearable units like these as of late.”
Speaking in regards to the in-depth inquiry, EU opponents chief Margrethe Vestager said: “This knowledge offers key insights in regards to the life and the successfully being venture of the customers of these units.
“Our investigation targets to verify that management by Google over knowledge tranquil thru wearable units as a results of the transaction would no longer distort opponents.”
The price has 90 days, till 9 December, to whole its investigation.