MarketWatch: Google and Fitbit said ‘I do,’ but the marriage could still be annulled
Google and Fitbit Inc. announced last week that their merger had closed, but Alphabet Inc.’s antitrust woes may make the megadeal far from complete.
The controversial acquisition’s conclusion sparked immediate pushback from Sen. Amy Klobuchar, D-Minn., ranking member and possible future chair of the Senate’s Subcommittee on Antitrust, Competition Policy and Consumer Rights, as well as several privacy-rights organizations, who object to the personal information that Fitbit could feed into Alphabet’s GOOGL, -0.58% GOOG, -0.52% data machine.
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“The Justice Department’s failure to stop Google’s acquisition of Fitbit is not only incoherent and embarrassing, it is also dangerous. This deal poses serious security risks to Fitbit consumers’ personal data,” said Sarah Miller, executive director of the American Economic Liberties Project. “Google uses its vast portfolio of internet services to spy on its users and profit off of highly personal information. There is no reason to believe they will not do the same thing with Fitbit.”
“In fact, Google has lied to antitrust enforcers about data before. As a blockbuster antitrust suit against Google explained last month, the company made promises to both the Federal Trade Commission and Congress about how it would manage its acquisition of DoubleClick, which Google then ignored,” added Miller.
“President-elect Biden should ensure his administration acts to reverse this deal as soon as possible,” Miller said.