NY Times 'Justice Department Must Take a Close Look at the Potential Consequences' of Google-ITA Acquisition

The New York Times in an article about Google-ITA says, "Antitrust regulators face a tough decision on whether to allow Google to buy ITA Software, a company that organizes online flight information.Once it gets into that business, Google may well figure out brilliant new ways to help travelers organize and book vacations online.[…]What would happen […]

The New York Times in an article about Google-ITA says, "Antitrust regulators face a tough decision on whether to allow Google to buy ITA Software, a company that organizes online flight information.

Once it gets into that business, Google may well figure out brilliant new ways to help travelers organize and book vacations online.[…]What would happen to the $80 billion-a-year online travel business if Google's rivals were relegated to the nether reaches of its search results and it came to dominate the search for online tickets, too?."

Here's NYT's argument against Google's acquisition of travel software company ITA:

Regulators must consider that if Google extends its dominance to the business of steering online customers to airlines and travel agencies, it would be in a position to charge more for this service. Without strong competitors to keep it in check, it might offer preferential placement to some airlines or agencies for a fee, or not list offers from companies that didn't pay up. This could lead to higher costs for agencies, airlines and passengers.[…]

[…]The Justice Department, which is considering the deal, might decide that the expected benefits from a new Google travel option outweigh the risk that this market will become too concentrated. That might be the right choice. But it is imperative that the department takes a close look at the deal and its potential consequences.

[tags]antitrust,regulators,justice,travelers,vacations[/tags]

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