Mobile and Technology

Search giant Google has acknowledged that it has received what’s called a “second request”, which means that the U.S. Department of Justice (DOJ) is asking for more information so that they can continue to review the deal with ITA.

Published: 30 Aug 2010

Search giant Google has acknowledged that it has received what’s called a “second request”, which means that the U.S. Department of Justice (DOJ) is asking for more information so that they can continue to review the deal with ITA.

Providing an update on the status of its ITA acquisition, Google’s senior product manager Andrew Silverman wrote: “While this means we won’t be closing the deal right away, we’re confident that the DOJ will conclude that online travel will remain competitive after this acquisition closes. In fact, over the past few weeks online travel companies have noted that they have alternatives to ITA’s product.” Silverman referred to Expedia’s Best Fare Search alternative and Worldspan’s e-Pricing search technology. There was a reference made to a media report, in which Continental Airlines noted that “there are alternatives to the [ITA] shopping solution in the marketplace, both internally and externally”.

“While we of course hope to continue working with ITA’s current customers, these comments demonstrate that competition will remain alive and well. We’ll be working cooperatively with the Department of Justice as they continue their review,” wrote Silverman.

“While we think this acquisition will benefit travellers as well as those seeking their business, we know that closer scrutiny has been one consequence of Google’s success, and we said that we wouldn’t be surprised if there were a regulatory review before the deal closes.”

According to a report filed by FT.com, Google has already been through protracted inquiries into two large advertising acquisitions, most recently its purchase this year of mobile advertising service Admob. The report added: The Federal Trade Commission had competed with the DoJ to see which agency would take on the case, according to one person familiar with the process. A DoJ investigation has been seen in some circles as potentially setting a higher hurdle for Google to clear, since the FTC cleared its earlier acquisitions of Admob and DoubleClick. However, David Balto, an antitrust expert not connected to the case, said that the prospects for the deal were unlikely to have been affected by the choice of regulator, and predicted that the acquisition would ultimately be cleared.