EUROPEAN COMMISSION DG Competition PUBLIC VERSION Case M.9660 – GOOGLE/FITBIT (Only the English text is authentic) REGULATION (EC) No 139/2004 MERGER PROCEDURE Article 8(2) Regulation (EC) 139/2004 Date: 17/12/2020 This text is made available for information purposes only. A summary of this decision is published in all EU languages in the Official Journal of the European Union. Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets. EUROPEAN COMMISSION Brussels, 17.12.2020 C(2020) 9105 final COMMISSION DECISION of 17.12.2020 declaring a concentration to be compatible with the internal market and the EEA agreement (Case M.9660 – GOOGLE/FITBIT) Text with EEA relevance (Only the English text is authentic) TABLE OF CONTENTS 1. Introduction ................................................................................................................ 11 2. The Parties .................................................................................................................. 12 3. The Transaction .......................................................................................................... 12 4. EU Dimension ............................................................................................................ 12 5. Procedure .................................................................................................................... 13 6. The Commission’s investigation ................................................................................ 14 7. Industry overview ....................................................................................................... 14 7.1. Wearable devices ....................................................................................................... 14 7.1.1. Types of devices ......................................................................................................... 14 7.1.2. Data generated by wearables ...................................................................................... 16 7.1.3. Health and fitness apps ............................................................................................... 17 7.2. OSs ............................................................................................................................. 17 7.3. Search engines ............................................................................................................ 18 7.4. Online advertising and ad tech services ..................................................................... 18 7.5. Digital healthcare services ......................................................................................... 21 8. Relevant markets ....................................................................................................... 22 8.1. Introduction ................................................................................................................ 22 8.2. Wearable devices ....................................................................................................... 22 8.2.1. Product market definition ........................................................................................... 23 8.2.1.1. Commission precedents ............................................................................................. 23 8.2.1.2. The Notifying Party’s view ........................................................................................ 23 8.2.1.3. The Commission’s assessment ................................................................................... 23 8.2.2. Geographic market definition .................................................................................... 25 8.2.2.1. Commission precedents ............................................................................................. 25 8.2.2.2. The Notifying Party’s view ........................................................................................ 25 8.2.2.3. The Commission’s assessment ................................................................................... 25 8.3. OSs ............................................................................................................................. 25 8.3.1. Product market definition ........................................................................................... 26 8.3.1.1. Commission precedents ............................................................................................. 26 8.3.1.2. The Notifying Party’s view ........................................................................................ 26 8.3.1.3. The Commission’s assessment ................................................................................... 27 8.3.2. Geographic market definition .................................................................................... 28 8.3.2.1. Commission precedents ............................................................................................. 28 8.3.2.2. The Notifying Party’s view ........................................................................................ 29 8.3.2.3. The Commission’s assessment ................................................................................... 29 1 8.4. App stores................................................................................................................... 30 8.4.1. Product market definition ........................................................................................... 30 8.4.1.1. Commission precedents ............................................................................................. 30 8.4.1.2. The Notifying Party’s view ........................................................................................ 30 8.4.1.3. The Commission’s assessment ................................................................................... 31 8.4.2. Geographic market definition .................................................................................... 32 8.4.2.1. Commission precedents ............................................................................................. 32 8.4.2.2. The Notifying Party’s view ........................................................................................ 32 8.4.2.3. The Commission’s assessment ................................................................................... 32 8.5. Search services ........................................................................................................... 33 8.5.1. Product market definition ........................................................................................... 33 8.5.1.1. Commission precedents ............................................................................................. 33 8.5.1.2. The Notifying Party’s view ........................................................................................ 34 8.5.1.3. The Commission’s assessment ................................................................................... 34 8.5.2. Geographic market definition .................................................................................... 35 8.5.2.1. Commission precedents ............................................................................................. 35 8.5.2.2. The Notifying Party’s view ........................................................................................ 35 8.5.2.3. The Commission’s assessment ................................................................................... 35 8.6. Online advertising services ........................................................................................ 35 8.6.1. Product market definition ........................................................................................... 35 8.6.1.1. Commission precedents ............................................................................................. 35 8.6.1.2. The Notifying Party’s view ........................................................................................ 36 8.6.1.3. The Commission’s assessment ................................................................................... 36 8.6.2. Geographic market definition .................................................................................... 37 8.6.2.1. Commission precedents ............................................................................................. 37 8.6.2.2. The Notifying Party’s view ........................................................................................ 38 8.6.2.3. The Commission’s assessment ................................................................................... 38 8.7. Ad tech services ......................................................................................................... 38 8.7.1. Product market definition ........................................................................................... 38 8.7.1.1. Commission precedents ............................................................................................. 38 8.7.1.2. The Notifying Party’s view ........................................................................................ 39 8.7.1.3. The Commission’s assessment ................................................................................... 39 8.7.2. Geographic market definition .................................................................................... 40 8.7.2.1. Commission precedents ............................................................................................