The European Commission has opened a competition investigation into Google’s proposed acquisition of US company Fitbit, which makes wearable devices such as smartwatches and fitness trackers.

In a statement, the commission said it was concerned that the deal would further entrench Google's market position in the online advertising markets by increasing the already vast amount of data that Google could use for personalisation of the adverts it serves and displays.

Database

The commission's concerns centre on Google’s acquisition of the database maintained by Fitbit about its users’ health and fitness.

It is worried that the deal could raise the barriers to entry and expansion for Google’s competitors as the search giant would gain an increased advantage in the personalisation of adverts.

Insights

Commissioner Margrethe Vestager, who is responsible for competition policy, said the use of wearable devices by European consumers was expected to grow significantly in the coming years.

She added that the data generated through these devices would provide important insights into the life and the health situation of their users.

“Our investigation aims to ensure that control by Google over data collected through wearable devices as a result of the transaction does not distort competition,” the commissioner said.

'Data silo'

In its investigation, the commission will also look at the effects of combining Fitbit's and Google's databases and capabilities on the digital healthcare sector in Europe.

Google has already offered to set up a ‘data silo’ to keep Fitbit data separate from any of Google’s other databases, but the commission has described this as “insufficient” to address its concerns.

The EU body has until 9 December to take a decision on the deal.