Democratic Senators Warn Over Fitbit Acquisition by Google

A total of seven Democratic Senators have come out cautioning against the deal in which leading search engine Google is planning to acquire producer of fitness products Fitbit Inc. (FIT).

According to the senators led by Senators Elizabeth Warren and Amy Klobuchar, the Justice Department needs to review the planned acquisition deal carefully since Google has a tendency of using acquisitions to become dominant in some sectors.

The Senators authored a letter addressed to Attorney General William Barr expressing their concern that Google in only using the acquisition deal to penetrate the wearable market since a significant part of its revenue comes from ad revenue.

Adding Fitbit’s consumer data to Google’s could further diminish the ability of companies to compete with Google in ad technology markets and could raise barriers for potential competitors to enter these markets,” read part of the letter.

Earlier Google had assured European antitrust authorities that it won’t be using users’ health data from Fitbit to target ads. The Senators termed this assurance as a ‘modest short-term concession’.

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