Google's Fitbit acquisition is getting a more serious look as the Justice Department reportedly ramps up its review amid data privacy concerns (GOOG, GOOGL, FIT)

A new report states that the $2.1 billion acquisition is under a second request review, meaning the companies must provide the Justice Department with more details.
Google will have to pay $250 million to Fitbit if it terminates the deal.
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It seems the coronavirus hasn't completely distracted Big Tech regulation, with the US Department of Justice reportedly amping up its investigation into Google's proposed buy of Fitbit.

The $2.1 billion deal, which would see Google completely acquire the wearables maker, was already under scrutiny from the Justice Department. Now the New York Post reports that the deal has been put under a second request review, asking both companies to provide more documents for the DoJ to sift through and giving more time to the investigation.

The DoJ declined to comment to Business Insider. Fitbit did not immediately respond to a request for comment, but in March it told us that it still expected the deal to secure regulatory approval by the end of 2020.

The main cause for concern here is personal data. An acquisition would give Google access to the data Fitbit's 28 million users, and although Google said it will not use people's health data for advertising purposes, there are still unanswered questions over how else that information might be used.

The New York Post's sources said that Assistant Attorney General Makan Delrahim, head of the DOJ antitrust division, has stepped away from the case due to his previous work lobbying for Google. Attorney General William Barr has reportedly taken the reins and begun issuing civil investigative demands to both companies.

It's possible that Google will have to make compromises on how it handles user data. That could take the shine off Fitbit's appeal but if Google pulls out of the deal it will have to pay Fitbit $250 million as a termination fee.

It's still unclear what Google's exact intentions with Fitbit are. It clearly wants to use Fitbit to bolster its own wearable efforts, which have lagged behind Apple and other companies in this space. Google still hasn't launched its own wearable hardware despite coming close and has instead leaned on third parties to build around its Wear OS software.

But access to data may be more appealing than the hardware itself here, particularly as Google inches further into the health space.

The outcome of this investigation could also have a bearing on the DoJ's wider ongoing investigation into Google, which extends into various parts of the business including advertising, Android, and search.

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