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Consumer orgs ask world's competition watchdogs: Are you really going to let Google walk off with all Fitbit's data?

(2020/07/02)


Updated Twenty consumer and citizen rights groups have [1]published an open letter [PDF] urging regulators to pay closer attention to Google parent Alphabet's planned acquisition of Fitbit.

The letter describes the pending purchase as a "game-changer" that will test regulators' resolve to analyse how the vast quantities of health and location data slurped by Google would affect broader market competition.

"Google could exploit Fitbit's exceptionally valuable health and location datasets, and data collection capabilities, to strengthen its already dominant position in digital markets such as online advertising," the group warned.

Signatories to the letter include US-based Color of Change, Center for Digital Democracy and the Omidyar Network, the Australian Privacy Foundation, and BEUC – the European Consumer Organisation.

How many steps was that, then? Uncle Sam's lawyers, watchdog race to probe Google's Fitbit gobble [2]READ MORE

Google confirmed its [3]intent to acquire Fitbit for $2.1bn in November . The deal is still pending, subject to regulator approval. Google has sought the green light from the European Commission, which is expected to publish its decision on 20 July.

The EU's executive branch can either approve the buy (with or without additional conditions) or opt to start a four-month investigation.

The US Department of Justice has also [4]started its own investigation , requesting documents from both parties. If the deal is stopped, Google will be forced to pay a $250m termination fee to Fitbit.

Separately, the Australian Competition and Consumer Choice Commission (ACCC) has [5]voiced concerns that the Fitbit-Google deal could have a distorting effect on the advertising market.

"Buying Fitbit will allow Google to build an even more comprehensive set of user data, further cementing its position and raising barriers to entry for potential rivals," said ACCC chairman Rod Sims last month.

"User data available to Google has made it so valuable to advertisers that it faces only limited competition."

The Register has asked Google and Fitbit for comment. ®

Updated at 14:06 UTC 02/07/20 to add

A Google spokesperson told The Reg : "Throughout this process we have been clear about our commitment not to use Fitbit health and wellness data for Google ads and our responsibility to provide people with choice and control with their data.

"Similar to our other products, with wearables, we will be transparent about the data we collect and why. And we do not sell personal information to anyone."

Get our [6]Tech Resources



[1] http://www.beuc.eu/publications/beuc-x-2020-060_joint_ngo_statement_on_google_fitbit_merger.pdf

[2] https://www.theregister.com/2019/12/12/doj_fitbit_google_antitrust/

[3] https://www.theregister.com/2019/11/01/google_buys_fitbit/

[4] https://www.theregister.com/2019/12/12/doj_fitbit_google_antitrust/

[5] https://www.theregister.com/2020/06/18/accc_google_fitbit_competition_concerns/

[6] https://whitepapers.theregister.com/

Robert Grant

"User data available to Google has made it so valuable to advertisers that it faces only limited competition."

Speaking as a non-lawyer, I don't think that's anti-competitive, though. It's only if the position is abused.

Anonymous Coward

When purchasing a company that is considered to be a top runner in the fitness band industry, so that they can get more info on you which means other companies are unable to do the same, is anti-competitive as it reduces the possibility of a competitive environment as you control all of the large ingress points for that data.

Depends

getHandle

If they reverse the trend of every update to the Fitbit app causing flakier connections, adding pointless cruft and advertising services I don't want, then I say bring it on!

Re: Depends

Anonymous Coward

"......advertising services........"

Erm, this is Google.

Re: Depends

Ben Tasker

> every update to the Fitbit app causing flakier connections, adding pointless cruft and advertising services I don't want

No, they'll bring more of that.

But, good news! the end is in sight.... after all, Google have a habit of axing support for things they've brought on board, so within a couple of years they probably won't be pushing fitbit updates anyway

Alternative Issue....

Dr. Vagmeister

I have a Garmin product with separate heart rate monitor, purchased years ago, and i thought i would try it out.

Garmin, and it seems many other manufacturers, force you to use their software which is internet based only, for storage of the data on their servers.

I NEVER want to store MY data on some other entities servers.

The letter misses the point in this regard.

The issue should be that any product/device MUST allow the owner/user to use it without the requirement for ANY internet connection or service.

Luckily, after a lot of searching i located the Garmin Ant Agent software (on a 3rd party website - which is risky) to download the workout, and used the Golden Cheetah application to view my results.

Since website after website is hacked, it is immediately obvious that every device MUST allow local only storage, and as per purchasing goods, a GUEST login where your card details are not stored, must be provided by every website too.

Then at least people have the option of storing their data locally only.

Re: Alternative Issue....

Anonymous Coward

And once that happens, I'll fly my pig to the moon.

Shame too, because I wholly agree--sell the product, not the consumer.

Re: Alternative Issue....

Charlie Clark

True. This is one of the reason I didn't go WithThings.

But there are exceptions: my digital scales from Soehnle has an online storage option but the default is on the device with the optiom to sync to my phone. I think the same is true for their other devices but I only really want to know how fat I am…

Re: Alternative Issue....

BenDwire

I'm sure many people will agree with you, but only those of us that are older / greyer / longer in the tooth / have no teeth left.

People simply don't want to bother with local storage. It's too difficult for them, and most youngsters don't even know how to open stuff that isn't in the cloud. Even an accountant friend of mine would rather trust his data to a paid Dropbox account than spend less money keeping it in a box at home.

I still buy CDs and DVDs which I consider to be an offline backup that I can pass onto my kids, especially as it appears than many classics are being "revised" or "no platformed" in case they offend future generations. George Orwell was meant to be a warning, not a blueprint for society.

Re: Alternative Issue....

Mike 137

"any product/device MUST allow the owner/user to use it without the requirement for ANY internet connection or service"

That's an excellent ideal, but unfortunately the only real commercial advantage is in the data. Mostly the hardware is sold at break even so they can get at the data stream where the profit lies.

Isn't it time for Google to face the Anti-trust strongarm squad?

Anonymous Coward

Then make sure that Google gets broken up.

Follow up with FaceBook and Amazon.

They all know more about us than we can remember ourselves. They can't be allowed to get even stronger.

Posting AC for all the good it will do. Their AI systems will know who I am within a second of pressing submit. That's how powerful they are.

Big Brother is real and is here already.

Re: Isn't it time for Google to face the Anti-trust strongarm squad?

RichardEM

The problem with breaking up many of the American companies that NOW are the big persons on the block.

Some time in the future, perhaps not that far away, the companies dominating the same space will be Chinese controlled by a government that believes that they have the RIGHT if not the RESPONSIBILITY to know all and control all. Just look at what they are doing to Hong Kong.

Re: Isn't it time for Google to face the Anti-trust strongarm squad?

Claptrap314

I've mentioned this before, but it's worth repeating. In the US, anti-trust is fundamentally a political matter.

In order to get the attention of the anti-trust authorities, you have to get into a position that you dominate a market. The authorities then have to determine that you are operating the monopoly "in restraint of trade"--that is, "abusing" your monopoly for some definition or the other. BUT--our constitution provides for monopolies! Specifically, inventors are guaranteed some sort of limited-time monopolies on their inventions. (This is a REALLY good thing, by the way, just subject to abuse.)

However, by the time you get to the point that an industry is important enough to the economy that a monopoly in it can be "in restraint of trade", the economic implications of actually doing anything about the situation can be even worse than what the monopolist is doing. The decision to proceed, therefore, is fundamentally a political one.

So...AT&T operated a monopoly on telephone services for generations. And while they were not popular, it was hard to see that there was any gain to be had by doing anything about it. The cost of the poles & wires was super high, and you would never have two competing networks that came close to the efficiency of a single network outside the densest urban areas, and it was far from clear that even there, gain was possible.

Then came the Internet. When AT&T started looking to expand into the Internet, their dominant position at the physical layer became a huge concern, and they were broken up. Remind me, how did that go?

Of course, IBM operated a monopoly (think Apple in the absence of Microsoft or Linux) for decades. The suit started, but the Reagan administration decided to slow-walk it until IBM was no longer a monopoly.

Or you could go back to the original trust-busting. Breaking up Standard Oil? Seems to have been a good thing. Breaking up the banks? That went okay--until the Depression, a few years later. Then they had to walk almost all of it back.

Or you could look at professional sports. Basketball, football, baseball--all run by monopoly organizations. But in the end, it's just entertainment, so--as a political decision--they are excluded from monopoly legislation.

There are no good answers.

Now, lets consider Google, Facebook, and Amazon. Each of these companies are hugely dependent upon the network effect for their success. Suppose we break Facebook into two companies, BookFace, and BaceFook. Suppose that we also split the users between them. What happens next? If 80% of someone's contacts are on BookFace, then that is where they will spend almost all of their time. If that means creating a new account, they will do that. And what about the other 20% of contacts? What if THEY want to talk to that person?

There is a real social benefit for keeping these companies together. The "obvious" solution is to highly regulate them. Except--let's talk about regulatory capture.

There. Are. No. Good. Answers.

ratfox

Does FitBit data even register compared to how much data Google already has? There's way more Android phones than fitbits...

Claptrap314

The value of each bit of data depends on how many other bits of data it is associated with. Adding the FitBit data to Google increases the value of ALL of Google's existing data.

So, yes. That is, after all, why Google is risking a $100 million penalty in case the deal fails.

Weasel words

Anonymous Coward

"Throughout this process we have been clear about our commitment not to use Fitbit health and wellness data for Google ads and our responsibility to provide people with choice and control with their data."

So they promise not to use Fitbit data advertising Google - but what about using that data to advertise other products and services?

I don't trust Google and I don't trust the Government and I don't trust cybercriminals.

SinceYouAsked

Sorry if I was reduntant.

But they all share data amoug "themselves" and between themselves.

Good grief, Google is already harvesting data from medical records for "reseach" purposes.

I'm looking to fund an DNS, VPN, and search engine with no memory I'd pay $30/month to screw them all over.

"Laugh while you can, monkey-boy."
-- Dr. Emilio Lizardo