Aviation News

April 9, 2011

Google Allowed to Takeover ITA Software, But Not Without Conditions: DOJ

More articles by »
Written by: BNO News
Tags: , , , ,

The United States Dept. of Justice on Friday announced that Google must fulfill some requirements in order to proceed with its proposed acquisition of ITA Software in order to protect competitiveness in airfare systems.

Google ITA Software buyout deal

The department required Google to develop license travel software, establish internal firewall procedures and to continue software research and development. In July 2010, Google agreed to purchase ITA Software, a producer of airfare pricing and shopping systems, for a $700 million.

The original proposed acquisition would have provided Google with substantially less competition among providers of comparative flight search websites in the United States, resulting in reduced choice and less innovation for consumers, according to the government.

On Friday, the Department of Justice’s Antitrust Division filed a civil antitrust lawsuit in U.S. District Court to block the proposed acquisition. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive concerns of the lawsuit.

“The proposed settlement assures that airfare comparison and booking websites will be able to compete effectively, providing benefits to consumers,” said Joseph Wayland, Deputy Assistant Attorney General of the Antitrust Division. “It also ensures those websites will continue to have access to ITA’s pricing and shopping software.”

Under the proposal, Google will be required to continue to license ITA’s QPX software to airfare websites on commercially reasonable terms. Such software is used for conducting searches for air travel fares, schedules and availability.

Google will also be required to further develop and offer ITA’s next generation InstaSearch product to travel websites, which will provide near instantaneous results to certain types of flexible airfare search queries and is currently in development.

Furthermore, Google will have to implement firewall restrictions within the company to prevent abuse of commercially sensitive information. The proposed settlement delineates when and for what purpose that data may be used by Google.

Google was also prohibited from entering into agreements with airlines that could restrict the air carrier’s right to share seat and booking information with Google’s competitors.



About the Author

BNO News





 
 

 

ANALYSIS: Could Spirit be looking to merge with Frontier?

Following last week's abrupt departure of Spirit Airlines CEO Ben Baldanza, ZIna Aziz explores whether the airline's future could include a merger with Frontier Airlines.
by Zina Aziz
0

 
 

Aeroflot to Purchase Transaero

Russia's largest carrier, Aeroflot, has announced it will purchase the country's second largest carrier in a deal worth 1 Ruble.
by Gordon Gebert, Jr.
1

 

 

DOJ’s “Collusion”: You Scratch My Airplane’s Back, I’ll Scratch Yours

The Department of Justice's charges of collusion at multiple airlines should come as no surprise to the ironic actions of none other than... The Department of Justice.
by Erika Armstrong
0

 
 

Today in Aviation History: October 29th

The US Dept. of Justice approves the Delta/Northwest merger, John Glenn becomes the oldest man to enter space, a plane carrying the California Polytechnic State University football team crashes, and more...
by NYCAviation Staff

 
 
(NYCAviation file photo)

BREAKING: Settlement Agreement in American/US Airways Merger

Late Tuesday morning, NYCAviation recieved word that American Airlines and US Airways had reached an antitrust settlement with the United States Department of Justice. This settlement will allow the merger to move forward, but ...
by NYCAviation Staff
0

 




  • Kevin Martin

    There is obviously a lot to know about this.  I think you made some good points in Features also.
    Keep working ,great job!

    thanks
    Facebook Application Development

  • Kevin Martin

    There is obviously a lot to know about this.  I think you made some good points in Features also.
    Keep working ,great job!

    thanks
    Facebook Application Development