Google, ITA Software Deal Faces Resistance

Google’s attempt to buy ITA Software, a travel software provider, has been openly opposed by a former top antitrust enforcer for the US Department of Justice under the George W Bush administration. The search engine giant proposed to pay $700 million for the travel software provider last July. A month after, they revealed that the Justice Department was taking a close look into the acquisition through an extended review.

Thomas Barnett, who now has a private practice and represents online travel agency Expedia, argues that Google will be able to influence the online travel services industry too much with the buyout, as it would become a provider of both internet traffic to sites and travel information. He indicated that, if he was still in the Justice Department, he would flag the merger, saying that he thinks the evidence suggests that the buyout threatens competition and consumers. The ITA merger will put Google in a spot to dominate searches for travel in a way that will be hard for either company to do by themselves, he added.

The FairSearch.org Coalition, which includes Expedia, Microsoft and Kayak.com, have opposed the planned merger as well. Public officials at state and federal levels have raised their concerns over the deal as well. With no major airlines related to the opposition, Barnett suggests that they may be reluctant to make Google mad. It takes courage to say things that are against a big and powerful company’s interest, he said.

Barnett’s conclusion about the merger was not to allow it. Instead, he suggested that Google license ITA’s data if they want to expand their presence in the online travel services market. This is what Microsoft does for their Bing search engine.