Google’s bid to buy Fitbit for $2.1bn is facing resistance, according to two people familiar with the matter, mainly because rivals and customers believe the company’s concessions to EU antitrust regulators are not enough. Alphabet’s Google last week proposed restricting Fitbit data for Google advertising and closely monitoring the process.
Google also offered to make it easier for competitors to connect to the Android platform by providing access to Android software (APIs), and said third parties would continue to access Fitbit users’ data with their consent.
The European Commission is currently seeking feedback from Google’s competitors and customers before deciding whether to accept or make more demands. Other sources said the new concessions could help Google get ANC permission.
However, some competitors and clients plan to ask EU competition enforcers for more, according to people familiar with the matter.
“The definition of a wearable API is too narrow, ” says one person familiar with the matter. He said Google should expand its range of applications to include new features for future market entry.
Google’s 10-year data promise has also come under fire from critics for advertising. “Why limit the remedy for data separation to 10 years?” said another person familiar with the matter. It’s a bad idea that Google is making long-term investments. The so-called decade may be tomorrow. “
Respondents (Google) have until next week to give feedback. The European Commission plans to make a final decision on the deal by December 23, although a ruling could be made earlier.