Australia consults on Google undertakings for Fitbit acquisition

The Australian Competition and Consumer Commission (ACCC) has launched consultations on a proposed court-enforceable undertaking offered by Google in relation to its proposed acquisition of Fitbit. The proposed undertaking would require Google to not use certain user data collected through Fitbit and Google wearables for Google’s advertising purposes for 10 years, with an option for the ACCC to extend this obligation by up to a further 10 years; maintain access for third parties, such as health and fitness apps, to certain user data collected through Fitbit and Google wearable devices for 10 years; as well as maintain levels of interoperability between third party wearables and Android smartphones for 10 years.

“Our decision to begin consultation should not be interpreted as a signal that the ACCC will ultimately accept the undertaking and approve the transaction”, said ACCC chair Rod Sims. “Feedback from interested parties will assist us to decide whether the behavioural remedy proposed is capable of addressing our competition concerns regarding this transaction”, Sims added. 

The ACCC released a statement of issues on 18 June this year. The statement of issues highlighted concerns that Google would have the incentive to restrict rival wearables’ access to critical Google services such as Google Maps and the Google Play app store, or restrict their interoperability with Android smartphones. Concerns were also raised that the proposed acquisition may provide Google with access to unique and substantial health related data that may improve the targeting capabilities of its advertising services.

“The ACCC is seeking feedback from industry and consumers on the long term effectiveness and enforceability of Google’s behavioural undertaking to address the competition concerns raised by its proposed acquisition of Fitbit.  The ACCC has not decided whether or not it will ultimately accept any undertaking”, Sims also said.

Interested parties can submit their comments and recommendations on the proposed undertaking by 9 December.