Google Fitbit Acquisition In Trouble As DOJ Looks Into User Data Concerns: Report

Google’s $2.1 billion Fitbit acquisition may have landed into a soup. According to a new report, the U.S. Department of Justice is reviewing the acquisition, which took place in November citing user data concerns.

Google is competing with the likes of Apple and Samsung in the wearables market and is rumored to have edged out social media giant Facebook to acquire the fitness wearables company.

The New York Post reported Sunday that the Department of Justice (DOJ) and the Federal Trade Commission (FTC) both have raised concerns about the merger. Google already has access to a large tranche of data, because of its search, Maps and Android services. If the merger is approved by DOJ, it would give Google access to people’s private data, including sensitive health information.

Google is already being investigated by many federal agencies for its anti-trust practices. While the company is obligated to file proposals with both DOJ and FTC, only one agency will review the deal.

According to the NY Post’s source, both agencies want to review the deal and the company and it has become an “arm wrestle” between agencies. While FTC generally performs such investigations, the DOJ is taking a lead on this one because it is already looking into a larger anti-trust investigation against the search giant.

“The DOJ’s handling of Fitbit will give an early read on the Google investigation,” the anonymous source told the Post.

The investigation is supported by the Donald Trump administration, which has criticized it for its “anti-conservative bias” and the President has stated that he is “closely watching” the search giant.

The search giant is also facing pressure from privacy watchdogs such as Public Citizen and Center for Digital Democracy who are calling for DOJ to block the deal on the grounds that it will give the company access to even more data on American consumers.

Democratic candidate Elizabeth Warren has called for breaking-up behemoths such as Google into smaller companies due to anti-trust issues.

With Sundar Pichai assuming the reigns at Google-parent Alphabet, it remains to be seen if he can steer the company’s ship through the muddy waters it is in currently.