Google Gets European Union Clearance for Fitbit Takeover

The EU grants Google conditional approval to acquire wearable fitness products company Fitbit.
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Alphabet's  (GOOGL) - Get Report Google received conditional approval from the European Union for its $2.1 billion takeover of Fitbit  (FIT) - Get Report, the maker of wearable fitness products.

Shares of Alphabet fell 0.37% to $1756.37 on Thursday. Shares of Fitbit were up 0.28% to $7.21.

"We can approve the proposed acquisition of Fitbit by Google because the commitments will ensure that the market for wearables and the nascent digital health space will remain open and competitive," said European Commission Executive Vice President Margrethe Vestager in a statement.

Google has agreed to not use Fitbit health and wellness data for ads. It will separate Fitbit data from Google ad data and allow Fitbit users to deny data access to other Google services for the next 10 years.

The EU "may decide to extend the duration of the Ads Commitment by up to an additional 10 years," the commission said in a statement.

Google reached an agreement to buy wearable fitness products company Fitbit in November 2019 in a bid to extend its reach in the consumer electronics segment.

The deal is expected to close this year, according to Ruth Porat, chief financial officer at Alphabet.

Last week, the Australian Competition and Consumer Commission published an offer from Google that looks similar to the European commitments, sources told Bloomberg.

Google vowed to Australia that it would maintain health and fitness apps’ access to Google and Fitbit data, and it confirmed that phones run by Google's Android operating system could keep working with other wearable devices for 10 years.

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