🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

Seven Democratic senators urge caution on Google's purchase of Fitbit

Published 07/23/2020, 03:59 PM
Updated 07/23/2020, 04:05 PM
© Reuters. FILE PHOTO: Fitbit Blaze watch is seen in front of a displayed Google logo in this illustration
GOOGL
-
AAPL
-
AMZN
-
META
-
GOOG
-
FIT
-

WASHINGTON (Reuters) - Senators Amy Klobuchar and Elizabeth Warren and five other Democratic senators on Thursday urged the Justice Department to be cautious in reviewing Google's planned purchase of Fitbit (NYSE:FIT), saying the tech giant had already cemented its dominance in some areas through acquisitions.

In a letter to Attorney General William Barr, the seven Democratic senators expressed skepticism that the purchase was solely a bid to enter the wearables market since Google's revenues are largely based on advertising driven by consumer data.

"Adding Fitbit's consumer data to Google's could further diminish the ability of companies to compete with Google in ... ad technology markets and could raise barriers for potential competitors to enter these markets," the lawmakers wrote.

Warren and Klobuchar, the top Democrat on the Senate Judiciary Committee's antitrust panel, have both been outspoken on antitrust issues. They were joined on the letter by Senators Richard Blumenthal, Cory Booker, Mazie Hirono, Sherrod Brown and Mark Warner.

The lawmakers also noted that Google had formally told European antitrust enforcers that it would not use Fitbit's health data to help it target ads. The senators called the offer "modest, short-term concessions."

Fitbit's fitness trackers and other devices monitor users' daily steps, calories burned and distance traveled. They also measure floors climbed, sleep duration and quality, and heart rate.

Alphabet (NASDAQ:GOOGL) Inc-owned Google said in November that it would buy Fitbit Inc for $2.1 billion to compete in the crowded market for fitness trackers and smart watches.

The senators also noted that Fitbit had a reputation for safeguarding user privacy while Google was known for its ability to monetize consumer data.

© Reuters. FILE PHOTO: Fitbit Blaze watch is seen in front of a displayed Google logo in this illustration

Google along with Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN) and Facebook (NASDAQ:FB) face a slew of antitrust probes. Its chief executive, Sundar Pichai, will appear along with the CEOs of the other tech giants on Monday on Capitol Hill before the House Judiciary Committee's antitrust panel.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.