Google announced it was buying Fitbit last year for $2.1 billion hoping to seal the deal in 2020.
During the past month, the fitness industry suffered significant financial losses as thousands of gyms closed due to the COVID-19 pandemic. While this has left millions of people with nowhere to workout, it has also left owners and staff alike scrambling to stay afloat financially.
The digital push was an alternative to keep the fitness industry afloat amid the pandemic. This has resulted in a surge in the number of subscribers embracing digital technology.
With Google venturing into the fitness market, the monopoly on user’s data was identified by EU regulators as the sweet spot of the deal. The realization has culminated in a 60-page questionnaire by the EU regulators to Google and Fitbit’s rivals, asking them to assess how the acquisition will affect the digital healthcare space.
EU regulators have set a deadline of July 20th for their next decision regarding the deal which gives them the onus to halt the acquisition process if answers are not convincing enough.
“Buying Fitbit will allow Google to build an even more comprehensive set of user data, further cementing its position and raising barriers to entry to potential rivals,” said ACCC Chairman Rod Sims.
There is a question of monopoly in the digital space by Google
This week, 20 consumer groups, from the US, EU, Mexico, Canada, and Brazil, wrote to regulators saying the deal was a “test case” to see if they could effectively reign in data monopolies.
“Google could exploit Fit-bit’s exceptionally valuable health and location datasets, and data collection capabilities, to strengthen its already dominant position in digital markets such as online advertising.”
CNET
“Google could also use Fitbit’s data to establish a commanding position in digital and related health markets, depriving competitors of the ability to compete effectively.”
The trend in the fitness industry.
Fitness wearables have been around for a few years now but they continue to take the fitness world by storm. The use of fitness wearables has increased a staggering 77%. Through collecting data, trainers can now see everything they need to know about their clients. They can now streamline their client’s training regime by analyzing the data to help them achieve the best results possible.
In the past decade, the health and fitness industry has certainly seen unprecedented growth.
This has been partly fueled by innovations in technology and a greater need for connectivity and inventive training approaches. The future of the fitness industry looks bright and no doubt consumer needs and innovative approaches to training will continue to fuel growth in the market estimated to hit $106b by 2020
