Google Fitbit deal closed (update: January 14)

Update, January 14, 2021 (12:43 PM ET): The news below makes it look like the Google / Fitbit deal is closed. However, the United States Department of Justice investigation into the acquisition is still ongoing. This raises doubts about whether the business will continue smoothly.

The DOJ gave the following statement to some publications (h / t Android Police):

The Antitrust Division’s investigation into Google’s acquisition of Fitbit is ongoing. Although the Division has not reached a final decision on whether to proceed with enforcement action, the Division continues to investigate whether Google’s acquisition of Fitbit could harm competition and consumers in the United States. The Division remains committed to conducting this review in the most complete, efficient and prompt manner possible.

However, it seems that the deadline for a decision with the investigation underway has passed. According to a statement from Fitbit sent to Android Authority, the company felt comfortable moving forward with today’s announcement, regardless of whether the DOJ formalized a purchase decision. Here is the statement from Fitbit:

We have completed the DOJ’s extensive review over the past 14 months, and the agreed waiting period has expired without objection. We remain in contact with them and are committed to answering any additional questions. We are confident that this business will increase competition in the highly crowded wearable market and have made commitments that we plan to implement globally.

This basically comes down to the fact that the DOJ agreed to a time limit for delivering a decision on its antitrust investigation into the business. Google says that date has passed, giving the company the authority to proceed with the purchase. The DOJ, however, says it is still investigating. This is something that a lawyer would need to give an opinion, but it seems that this deal is not as closed as Google and Fitbit say.

Original article January 14, 2021 (09:26 AM ET): Today, both Google and Fitbit have formally announced the acquisition of the latter. This business has been going on for over a year. He positions Fitbit as a Google company, but independent in operations. This is no different than how Nest had been for several years after its acquisition in 2014.

Related: The best Fitbit trackers you can get now

Rick Osterloh wrote Google’s announcement about the deal. In his letter, he emphasized that “users’ health and wellness data will not be used for Google ads”. He also explained that it is a binding commitment to make the deal happen, which means it is not an empty promise.

Likewise, Fitbit’s CEO and co-founder, James Park, wrote a similar letter detailing the deal. In his statement, he used exactly the same language as Osterloh to assure users that Google will not use people’s health data for monetary gain.

Google Fitbit business: what could it mean?

In his letter, Osterloh said that this business is about “devices, not data”. This is probably the most important statement around this acquisition. This strongly suggests that Google is looking to Fitbit to reinforce its wearable hardware ambitions more than anything else.

The wearable market has never seen a Google branded device, although the market is booming. There have been rumors of a so-called Pixel Watch for a long time, but they never materialized. With the Wear OS platform stagnating, this Google Fitbit deal is an easy solution to the biggest problem with the big G in wearables: no hardware.

Related: The best fitness trackers you can get

Fitbit has already brought Google Assistant to its two biggest launches in 2020: Fitbit Sense and Fitbit Versa 3. In the future, we can expect to see Assistant and other Google products appear on Fitbit devices.

In his letter, Park makes it clear that “many of the things you know and love about Fitbit will remain the same.” However, it is only a matter of time before Fitbit becomes increasingly Google. We need to wait and see how it ends.