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Monday, Nov 4 2019

Full Issue

Google Jumps Into Fitness Tracking Business With $2.1B Fitbit Acquisition

The entry into the crowded field marks the latest effort by tech giants to secure a piece of the lucrative wearables marketplace.

Google, the company that helped make it fun to just sit around surfing the web, is jumping into the fitness-tracker business with both feet, buying Fitbit for about $2.1 billion. The deal could put Google in direct competition with Apple and Samsung in the highly competitive market for smartwatches and other wearable electronics. But it also raises questions about privacy and Google's dominance in the tech industry. (O'Brien, 11/1)

The acquisition is likely to face regulatory scrutiny from agencies already investigating Google for antitrust concerns, because Fitbit collects sensitive information from users through the device. In an effort to head off that potentially thorny point, Google said it would not use health data gleaned from Fitbit devices in its core advertising business. 鈥淵ou will always be in control of your data, and we will remain transparent about the data we collect and why,鈥 Fitbit鈥檚 chief executive, James Park, said in an email to his company鈥檚 customers on Friday morning. 鈥淲e never sell your personal information, and Fitbit health and wellness data will not be used for Google ads.鈥 (Wakabayashi and Satariano, 11/1)

In recent months, Fitbit has been aggressively building out a health business, a division within the company known as Fitbit Health Solutions. Over a year ago, the company launched Fitbit Care, an offering aimed at employers and health plans that pay Fitbit to monitor and coach people with chronic conditions including obesity, diabetes, and hypertension. Those enterprise customers can choose various plans at escalating prices, paying more to have Fitbit鈥檚 network of human coaches involved in helping people manage their conditions. (Thielking and Robbins, 11/1)

Google parent company Alphabet鈥檚 move to buy Fitbit, announced Friday, comes with big questions for the growing push in health and medicine to make use of data collected from smartwatches and fitness trackers. ...This isn鈥檛 Google鈥檚 first foray into wearables technology. The company鈥檚 Verily unit, which is focused on health care, had previously worked with something known as the 鈥渟tudy watch,鈥 which was used in clinical trials. In January, that device received clearance from the Food and Drug Administration to be used to take electrocardiograms. (Robbins and Herper, 11/1)

In other health industry news 鈥

Siemens Healthineers said it expected strong growth to continue next year, as the German maker of medical imaging machines and diagnostic equipment reported better than expected fourth-quarter sales on Monday. Healthineers' shares jumped 8% in early morning trade to its highest level on record. (11/4)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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