US Department of Justice begins investigation into FitBit acquisition by Google

The US Department of Justice opens an investigation into Google’s acquisition of FitBit. Several US authorities are said to be concerned about the implications for user privacy.

The question would have been whether the Department of Justice or the trade watchdog, the Federal Trade Commission, should study the takeover. Ultimately, the investigation will come to the former, sources report to both Reuters and the New York Post. US law requires that major acquisitions be investigated by either party. According to the sources of Reuters and the New York Post, both parties are concerned that the acquisition will override Google’s grip on users’ data.

Google acquired FitBit last month for an amount of 1.88 billion euros. Soon, several consumer and privacy organizations argued that the acquisition should be blocked. Google also gets the data into the hands of millions of users with FitBit. The company says it will not link that data to profiles. With the acquisition of the wearable manufacturer, Google wants to focus primarily on making its own hardware under the Made By Google label.

The investigation is striking because the US Department of Justice is already scrutinizing Google for possible abuse of power. This involves a broader study of the power of large tech companies. Facebook and Amazon, and possibly Apple, are also under the magnifying glass. The new investigation is said to have landed with the Department because it also handles the larger antitrust investigation, according to the New York Post source.