Sat, 16 Jan 2021

Google is set to win conditional European Union approval for its $2.1 billion takeover of health tracker Fitbit Inc. this month, people familiar with the discussions said.

The deal could be approved as soon as next week after national competition authorities give their opinion, said the people who asked not to be named because the procedure isn't public. The EU usually consults the so-called advisory committee on mergers days before it issues approval.

Google announced its plans to buy Fitbit in November 2019, noting that it would use the smartwatch maker to improve its lagging hardware business. Clearing regulatory obstacles for the deal come in a tough climate when the company is facing mounting global scrutiny of big technology companies and potentially restrictive regulation in the EU and other regions.

While Google has agreed to concessions to allay EU antitrust concerns about its move into wearable fitness devices, its final pledge to European authorities hasn't been disclosed.

Both Google and the EU declined to immediately responded comment. The EU currently has a Jan. 8 deadline to rule on the deal.

Shares of Fitbit rose as much as 1.5% and were trading 2 cents higher at $7.25 at 12:17 p.m. New York time.

Australia's Competition & Consumer Commission on Monday published an offer from Google that looks similar to the European commitments, two of the people said.

Google pledged to Australia that it would maintain health and fitness apps' access to Google and Fitbit data and ensure Android phones could keep working with other wearable devices for 10 years.

Ruth Porat, chief financial officer at Google parent Alphabet Inc., has said the company anticipates its bid for Fitbit Inc. will be completed this year.

Source: News24

More United States News

Access More

Sign up for United States News

a daily newsletter full of things to discuss over drinks.and the great thing is that it's on the house!