DOJ Mulls Legal Challenge to Google’s Plan to Capture Travel Software Co., Report Says

January 13, 2011
The U.S. Justice Department may be preparing a legal action against Google's plan to extend its tentacles further into the travel business.

Bloomberg reports that DOJ is "preparing for a possible antitrust lawsuit" to prevent the Internet advertising giant from acquiring ITA Software Inc., which "provides online airline flight and ticket information."

Several software and online travel companies, such as Expedia and Travelocity are opposing Google's expansion plans. Pamela Jones, a former member of the Federal Trade Commission Pamela Jones told Bloomberg that she believes Google's ambitions do rankle federal law.

"I believe the Google-ITA deal is uncompetitive and should be challenged," Jones said. "It's a dominant firm expanding in an adjacent market acquiring ITA, and the effect would be to dominate flight search."

Bloomberg notes the speed with which Google, the mega-advertising cyberspace business, is seeking to expand its empire, by "spending about $1.6 billion on more than 20 companies in the first nine months of last year, according to regulatory filings."

The American Consumer Institute Center for Citizen Research, a public interest group, also lauded the report that DOJ may be moving forward with a legal challenge to Google's plan.

Steve Pociask, president of the group, said, "Google's acquisition of ITA would give it dominant control of online travel search, which would lead to less choice and higher prices for consumers."

 

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