ACCC formally investigates Google’s takeover of Fitbit

The competition watchdog has launched a formal inquiry into Google’s $US2.1bn acquisition of fitness tracking company Fitbit.

Melissa Faulkner modelling a Fitbit watch.

The Australian Competition and Consumer Commission has launched an inquiry into Google’s $US2.1 billion acquisition of fitness tracking company Fitbit, amid competition concerns.

The deal, announced in November last year, was previously a watching brief, but the ACCC has stepped up its examination into a formal investigation.

Among issues worrying the ACCC is whether Google uses Fitbit to deliver targeted health ads.

The deal is also subject to review by other competition regulators around the world.

The Google acquisition would significantly expand the tech giant’s data reach into so-called wearable devices like watches with a focus on health data.

Competition regulators have expressed concern at Google’s control and use of data.

ACCC chairman Rod Sims, who last year launched a probe into the market power of the tech giants, has said the implications of acquisitions made by the likes of Google and Facebook need to be carefully considered.

He said in November the Google-Fitbit deal once again highlighted the dangers of consumers losing control of their data when companies are sold or merged.

“While parties frequently claim that they don’t have the incentive or ability to combine data sets, history tells us that incentives and ability can and do change, often over a relatively short period of time,” he said in a speech.

Google and Fitbit have indicated that user health and wellbeing data will not be used for Google Ads. However Mr Sims said there was no guarantee that will be the case in the future.

The ACCC last year launched a Federal Court action against Google alleging false and misleading claims over the use of its location data.