Google expects antitrust review of ITA Software acquisition

Google said it expects the Department of Justice to scrutinize its proposed acquisition of a company that makes software to search for airline pricing and ticket information for potential antitrust implications.

Google announced earlier this month it plans to purchase ITA Software, which makes an airfare search engine and pricing system used by many airlines and online travel sites, for $700 million in cash. Google said it plans to build new tools to make it easier to search and compare airfares.

But the search giant's entry into the highly competitive online travel market has also raised concerns. Google senior product manager Andrew Silverman said his firm received a "second request" for information from the Department of Justice indicating the government will review the deal, according to a blog post published Friday.

"While we think this acquisition will benefit travelers 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," 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."

Silverman argues there are several viable competitors to ITA's software offerings, including Expedia's "Best Fare Search" option and search technology developed by Worldspan. Continental, an ITA client, has said there are other alternatives to the firm's software.

Google has pledged to honor all existing agreements with ITA Software, meaning existing clients should see no impact from the ownership change.