- The Competition Commission has granted approval to US multinational tech company Google to merge with electronics and fitness company Fitbit Inc. South Africa.
- The global merger notified in several jurisdictions, including the European Union, the US, Australia, Canada and Japan will see Google acquire the wearable technology company.
The Competition Commission has granted approval to US multinational tech company Google to merge with electronics and fitness company Fitbit Inc. South Africa. The global merger notified in several jurisdictions, including the European Union, the US, Australia, Canada and Japan will see Google acquire the wearable technology company.
The approval though conditional is based on the view that the proposed transaction would result in a substantial reduction in competition. There are however apprehensions that as a result of the proposed merger, Google will exclude competing suppliers of wrist-worn wearable devices from accessing its Android operating system for smartphones. Experts point out that Android a dominant mobile operating system (OS) unlike the Apple ecosystem, is not vertically integrated into the production of wrist-worn wearable devices prior to the merger.
The Fitbit products available in South Africa are fitness trackers, smartwatches and the Fitbit mobile app. Experts are of the view that, the merger is likely to alter the market structure for the supply of wrist-worn wearable devices in South Africa, and increase barriers to entry for potential entrants in the market. Google on its part, has refuted such a claim and reassured that it is committed to making access to the Android OS available, without charge for access and on a non-discriminatory basis, to all competing manufacturers of wrist-worn wearable devices. Google also added that it will maintain data separation between the Fitbit data and Google’s existing data without using any Measured Body Data or Health and Fitness Activity Location Data from Fitbit in, or for, Google Ads. These conditions, monitored by an independent Trustee will be in place for a period of 10 years and in line with what is offered in other jurisdictions. Commissioner Tembinkosi Bonakele said that the merger underlines the need for regulatory interventions in digital markets, particularly when large global technology firms that operate across multiple jurisdictions are involved.
