South Africa Conditionally Approves Google/Fitbit Merger

The Competition Commission of South Africa has conditionally approved the proposed merger whereby Google intends to acquire Fitbit. This is a global merger, notified in several jurisdictions, including the EU, USA, Australia, Canada, and Japan.

Google is active in a wide range of areas, including online search, online advertising, other online services such as YouTube, Google Maps, and Gmail as well as cloud computing services. Google’s business in South Africa relates to the provision of local support and marketing services internally for Google. Google does not sell any wearable devices or hardware in South Africa. 

Fitbit develops, manufactures, and distributes wrist-worn wearable devices and smart scales as well as software and services designed to give its users tools to help them reach their health and fitness goals. The main Fitbit products available in South Africa are fitness trackers, smartwatches and the Fitbit mobile app.

The Commission found that the proposed transaction is likely to result in a substantial prevention or lessening of competition.

Specifically, Google commits:

• not to discriminate against any Wrist-Worn Wearable Device manufacturers by withholding, denying, or delaying access to the Android functionalities that Google generally makes available to other Android Smartphone App Developers for use with an Android App.
• Not to discriminate between Wrist-Worn Wearable Device manufacturers and other Android Smartphone App Developers in relation to changing, replacing, or retiring Android APIs.
• Not to discriminate between Wrist-Worn Wearable Device manufacturers and other Android Smartphone App Developers in terms of the access it provides to Developer Previews.
• Not to discriminate between Wrist-Worn Wearable Device manufacturers and other Android Smartphone App Developers in terms of the access it provides to Developer Documentation. 

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