Google closes Fitbit deal amid ongoing US Department of Justice evaluation

Alphabet Inc’s Google closed its $2.1 billion takeover of Fitbit Inc despite the fact that the US Justice Department mentioned it’s nonetheless conducting an antitrust investigation of the deal.
In a weblog publish Thursday, Google mentioned it accomplished the acquisition and highlighted the corporate’s binding commitments to guard person privateness. Shortly after the weblog was revealed, the Justice Department’s antitrust division launched a press release saying it hasn’t signed off on the deal.
“The Antitrust Division’s investigation of Google’s acquisition of Fitbit remains ongoing,” Alex Okuliar, a deputy assistant legal professional common, mentioned. “Although the division has not reached a final decision about whether to pursue an enforcement action, the division continues to investigate whether Google’s acquisition of Fitbit may harm competition and consumers in the United States.”

The Justice Department investigation raises the chance that the federal government may sue to unwind the deal later if it determines that the merger violates antitrust legal guidelines.
The division and a gaggle of state attorneys common sued Google final 12 months, accusing the corporate of abusing its dominance in on-line search in violation of antitrust legal guidelines.
Google mentioned in a press release that it closed the deal as a result of the investigation interval had ended and the Justice Department hadn’t taken motion to cease it. In the US, firms are free to finish offers after they adjust to the federal government’s request for info, a interval that may final for a 12 months or longer. If enforcers wish to cease a merger, they need to sue and win a court docket order blocking it. They may search to unwind consummated offers.
“We complied with the DOJ’s extensive review for the past 14 months, and the agreed upon waiting period expired without their objection,” Google mentioned. “We continue to be in touch with them and we’re committed to answering any additional questions.”
Google introduced its plans to purchase Fitbit in November 2019, noting that it could use the smartwatch maker to enhance its lagging {hardware} enterprise. The deal has confronted criticism from client teams and regulatory scrutiny in jurisdictions world wide.
The European Union authorised the takeover in December after Google pledged to keep up entry for rival well being and health apps and units to Google and Fitbit knowledge.