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The following article was published in our article directory on October 27, 2010.
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United States Four Co-stop Google Acquisition ITA

Article Category: Business

Author Name: Amanda xzh

Several leading U.S. online travel companies are working together to form a coalition to block Google to 7 billion acquisition of flight data leading provider of ITA, said the deal could make Google's influence on the tourism industry is too large.

It is reported, including Expedia, travel site kayak.com, Sabre Holding, and Farelogix, including four companies, is forming a coalition called the FairSearch.org, trying to persuade the United States Department of Justice to prevent the acquisition of Google.

In addition, the four companies also started to actively lobby on Capitol Hill, hoping to members of Congress understand that the acquisition will allow Google to gain control of ITA Software, which rule online air travel market. Current travel search business, many companies provide technical support by ITA Software.

Google responded that the acquisition of ITA will help the Guild in the consumer search data Google can provide more useful information. But opponents worry about the Google acquisition may limit access to ITA's software.

On the other hand, Microsoft also said that the acquisitions made, and investigators with the Justice Department and lawyers for the exchange. Microsoft's search engine will be dependent on the data from the ITA to provide travel search results. Microsoft said that, in general ITA software control direct, online air travel booking amount of 65%. ITA declined to comment

Opponents of the acquisition was also noted that Google has the current business coverage from broadband Internet to mobile phones to tourism, its dominance has too much at risk. They cited the Internet traffic monitoring agency Experian Hitwise data that point to online travel sites now all search engine traffic in more than 30% comes from Google, after the acquisition of ITA, Google can put them into their own Web site traffic among.

Expedia 'legal adviser Thomas Barnet, said: "Google in the search market has tremendous power, this acquisition will allow Google to lead the consumer direction in its favor. All in all consumers will eventually be damaged."

Barnett served in the Bush Administration Justice Department's antitrust department heads, he asked the Justice Department in 2008 on Google and Yahoo search advertising partnership anti-trust and privacy issues "thorough investigation", which eventually led to Google had given up the search advertising partnership with Yahoo's agreement to sign the plan.

But not all online travel sites are opposed to the deal, for example, the second largest online travel company Priceline.com, Travelport and Orbitz, they are very supportive of this acquisition. Airlines generally cautious on the deal. But some companies have expressed their concerns privately, saying they did not get a guarantee from Google.

Google said the acquisition does not make monopoly ITA travel search market. The company said other companies also provide flight data, and said no plan to sell their own tickets. Google ITA also committed themselves to fulfilling all existing contracts.

Google spokesman Adam Kovacevich Asia, said: "When a user on a Google search for flight, we hope to have better results, like other search engines do the same now. We plan to launch flights search tool, so as to airlines and Travel agency website to bring more traffic and potential customers, while online travel industry has also expressed support to this transaction, we are encouraged. "

Competitors that Google's commitment is unfounded. They said, no other company can replace the ITA's services, and Google has no commitment to renew their contracts or provide any of the upgrades. They also worry Google might analyze their data on the use of ITA, and thus to understand their proprietary systems.

Kayak Robert Birge, chief marketing officer, said: "We have to ITA and Google, respectively, expressed these concerns, proposed a number of requests. These requests are explicitly refused to show their intentions."

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