View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
  2. Networks
April 10, 2011

Google’s $700m ITA deal cleared with restrictions

Government to monitor Google for anti-competitive behaviour

By CBR Staff Writer

Google has been given the clearance for its $700 million purchase of ITA Software. However the approval comes with restrictions.

The US Justice Department anti-trust division has asked Google to report any complaints it receives from companies that are directly or indirectly related to the proposed settlement. It also said that Google will be monitored for anti-competitive behavior including manipulation of search results.

Deputy Assistant Attorney General Joseph Wayland said, "The proposed settlement assures that airfare comparison and booking websites will be able to compete effectively, providing benefits for consumers."

Google said that it will license ITA’s travel information software to third parties and have an arbitration process for disputes over fees.

The search engine company said, "We’re moving to close this acquisition as soon as possible."

After the initial announcement of the Google-ITA deal, Microsoft and a few online travel sites such as Kayak.com and Expedia had asked the court to review the deal, citing monopoly concerns. They were represented by FairSearch.org.

Content from our partners
DTX Manchester welcomes leading tech talent from across the region and beyond
The hidden complexities of deploying AI in your business
When it comes to AI, remember not every problem is a nail

The Justice Department agreed that unless modified, the acquisition "would have substantially lessened competition among providers of comparative flight search websites in the United States."

The Department took about eight months to conclude the review.

FairSearch.org has welcomed the conditions imposed on the deal.

"By putting in place strong, ongoing oversight and enforcement tools, the department has ensured that consumers will continue to benefit from vibrant competition and innovation in travel search," FairSearch.org said.

The federal judge has to approve the proposed settlement.

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU