Google today (Thursday) received approval for the absence of a conflict of interest from the EU, regarding its offer to acquire Pitbit – a company that operates in the field of wearable technology and holds information about the health of its customers – for $ 2.1 billion; This is after agreeing to restrictions on how you will use user health information.
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The deal drew fire from information privacy gatekeepers, consumer organizations and Google’s competitors on both sides of the Atlantic, due to the company’s huge market power and its potential use of user health information for targeted advertising. Pitbit, formerly the leading company in the wearable technology market, has lost its market share to Apple, Shiomi, Samsung and Wavi in recent years.
The European Commission said it had reached agreements with Google, which would be valid for ten years with the possibility of an extension for another ten years, to address concerns about fair competition. Google will store the information about Pitbit users separately from the information used for targeted advertising, and will not use the information of Pitbit and its devices in advertisements. Users will be able to choose whether to store their health information in their Google or Pitbit account. The technology giant will maintain access to users’ medical information for software applications using the Fitbit Web API software, without charging any fees, and subject to user consent. It will continue to provide free core API software licensing to Android device makers, which will allow their gadgets to function on smartphones with the Android system.
“We believe this deal will drive innovation in wearable technology, and allow us to create products that will help people live healthier lives,” Google said.