infoTECH Feature

April 08, 2011

Government Approves Google Purchase of ITA Software, But May Be Watched More Closely

Google has its sights set on purchasing airline fare tracker ITA Software and according to this Associated Press (News - Alert) report, government officials will let Google’s (News - Alert) dreams come true – with a few exceptions.

With this $700 million purchase, Google will become a key player in the online travel market. Taking over ITA (News - Alert) will give Google control over the technology behind the reservation systems of most major U.S. airlines, as well as many popular online fare-comparison services, such as Kayak, TripAdvisor and Hotwire.

This is where the exceptions take hold – the Justice Department is requiring that Google agree to license the ITA software to other companies. At the same time, Google will be prohibited from accessing any proprietary data or technology of ITA customers that resides or runs through the ITA servers. To win approval, Google agreed to the exceptions.

The government also plans to monitor Google to ensure that it does not engage in anticompetitive behavior. This would include manipulating the power search engine in an effort to steer consumers to its own services, or to bury links to rivals far down in its search results if Google does in fact use ITA to become a player in the online travel business.

Google will also be subject to broad requirements to report to government officials on its online travel operations, including travel search and advertising. The government also plans to establish a forum for complaints regarding Google’s behavior.

Joelle Tessler, technology writer for the AP suggests that this move could actually lay the groundwork for a broader investigation by the Justice Department or the Federal Trade Commission into Google’s practices as the company expands its reach beyond general Internet search into more specialized markets.

It doesn’t help that Google’s search results highlight some of its own specialized services, such as mapping, video and finance. Such practices have prompted an investigation by the European Commission and the Texas attorney general to determine whether Google manipulates search results to extend its monopoly into other online businesses in which it operates.

For its part, Google has already promised that it will not sell airline tickets or book other travel arrangements on its own site and will instead use ITA to improve search results for travel. This is expected to give consumers more choices and better ways to search for plane tickets.

It could, however, also enable Google to command higher ad rates from companies operating in this space, such as airlines, hotels, rental car agencies and others trying to promote their services to travelers.
Susan J. Campbell is a contributing editor for TMCnet and has also written for eastbiz.com. To read more of Susan’s articles, please visit her columnist page.

Edited by Janice McDuffee
FOLLOW US

Subscribe to InfoTECH Spotlight eNews

InfoTECH Spotlight eNews delivers the latest news impacting technology in the IT industry each week. Sign up to receive FREE breaking news today!
FREE eNewsletter

infoTECH Whitepapers