Google Fitbit deal ended (update: January 14)

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Update, January 14, 2021 (12:43 p.m. ET): The news below gives the impression that the Google / Fitbit deal is secure. However, the US Department of Justice’s investigation into the acquisition is still ongoing. This raises doubts as to whether the deal will continue without further problems.

The DOJ has made the following statement to a few publications (h / t Android Police):

The Antitrust Division investigation into Google’s acquisition of Fitbit continues. While the division has not made a final decision on whether to pursue enforcement action, the division continues to investigate whether Google’s acquisition of Fitbit may harm competition and consumers in the United States. The Division remains committed to conducting this review as thoroughly, efficiently and expeditiously as possible.

However, it appears the deadline for a decision with this ongoing investigation has passed. According to a Fitbit statement sent to Android Authority, the company felt comfortable moving forward with today’s announcement, regardless of whether the DOJ was formalizing a buying decision. Here is the Fitbit statement:

We have complied with DOJ’s extensive review over the past 14 months, and the agreed upon waiting period has expired without their objection. We keep in touch with them and we promise to answer any additional questions. We are confident that this agreement will increase competition in the busy portable device market, and we have made commitments that we plan to implement globally.

Essentially, it’s up to the DOJ to agree to a deadline to render a decision on its antitrust investigation into this deal. Google says that date has since passed, giving the company the power to make the purchase. The DOJ, however, says it is still investigating. It’s something a lawyer should weigh in, but it looks like this deal isn’t as close as Google and Fitbit say it is.

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Original article, January 14, 2021 (9:26 a.m. ET): Today, Google and Fitbit officially announced the acquisition of the latter by the former. This deal has been going on for over a year now. It positions Fitbit as a Google company but independent in its operation. It is not unlike what Nest had been for several years after its acquisition in 2014.

Related: The best Fitbit trackers you can get right now

Rick Osterloh wrote Google’s announcement of the deal. In his letter, he stressed that “data on the health and well-being of users will not be used for Google ads.” He also explained that this was a binding commitment to make the deal a reality, which means it’s not an empty promise.

Likewise, Fitbit CEO and co-founder James Park wrote a similar letter detailing the deal. In his statement, he used the exact same language as Osterloh to assure users that Google will not use people’s health data for financial gain.

Google Fitbit offer: what could it mean?

In his letter, Osterloh said the deal was about “devices, not data.” This is probably the most important statement surrounding this acquisition. This strongly suggests that Google is looking at Fitbit to bolster its wearable hardware ambitions more than anything else.

The wearable clothing market has never seen a Google-branded device, even though the market is booming. There have been rumors of a so-called Pixel Watch for a long time, but they never materialized. With the Wear OS platform stagnant, this Google Fitbit deal is a straightforward solution to the Big G’s biggest problem with wearable clothing: no hardware.

Related: The best fitness trackers you can get

Fitbit has already brought Google Assistant to its two biggest launches in 2020: the Fitbit Sense and Fitbit Versa 3. In the future, we can expect to see Assistant and other Google products appear on Fitbit devices.

In his letter, Park makes it clear that “most of the things you know and love about Fitbit will stay the same.” However, it’s only a matter of time before Fitbit becomes increasingly Google-ified. We’ll have to wait and see how it goes.