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Travel Companies Expand Opposition To Google’s Takeover of ITA

Travel Companies Expand Opposition To Google’s Takeover of ITA
ITA Software LogoA coalition of major online
travel firms is mobilizing against Google’s $700 million plan to take over
flight information software company ITA Software. 

On Tuesday, members of the coalition that include Expedia, Kayak, Farelogix, and
Sabre Holdings, the parent company of Travelocity, announced the creation of
FairSearch.org.

With FairSearch.org, the group hopes to convince the U.S. Justice Department to
block Google’s acquisition of ITA, which they claim would give the Internet
giant too much power over the $80 billion online travel sector.

The companies have already put up a Web site dedicated to informing the public
about their stance against Google’s plan.

According to the coalition’s Web site, if Google were to buy ITA’s flight search
software, which most travel search engines and travel sites use, Google could
limit the competition’s access to the software.

ITA’s software manages around 65 percent of direct, online airfare purchases for
airlines.

“If the transaction is approved,” the FairSearch.org states,  “consumers should
expect to face higher prices and less choice when searching for travel online.”

Google Logo - anti-trust concernsIn addition to reaching out
to the public and the media, the companies have begun a lobbying blitz on
Washington, appealing to Congress members to vote against the Google plan.

Though not a part of the coalition, Microsoft, whose search engine, Bing,
depends on ITA data, is also working against Google’s ITA purchase. Microsoft is
said to be in talks with the Justice Department, lawmakers and investigators.

Not all online travel agencies are against the purchase. Priceline, Travelport
and Orbitz have lent their support to the deal. As for the airlines, which also
use ITA software, they have remained neutral about the deal.

Google, meanwhile, has sought to quell the concerns. Google says the purchase of
ITA will help it provide better information for consumers looking for flight
information.

Using ITA’s software as a base, Google contends that it will build better travel
tools that will benefit consumers and the industry as a whole.

The Internet giant also says that unlike other travel sites it has no intention
of selling tickets and that it would honor all of ITA’s existing contacts.

Rivals are skeptical of Google’s promises, saying the company has not committed
to renew their contracts or continue software upgrades. Competitors are also
worried that Google might use the information gathered by ITA to gain
information about rivals’ proprietary systems.

The U.S. Justice Department is currently conducting an antitrust review of the
deal. This is not the first time Google has had to finesse its way through
contentious government antitrust inquiries to gain regulatory approve of its
purchases.

In 2008, Google was approved to buy online ad service DoubleClick for $3.2
billion, and this year Google purchase mobile ad service AdMob for $681 million.

By Adriana Padilla for PeterGreenberg.com.

Related Links:
NPR,
Wall Street Journal

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