US government to challenge Google's ITA Software takeover

14 Jan 2011

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The US Justice Department (DoJ) is preparing to mount a legal challenge against Internet giant Google's $700-million acquisition of flight information software firm ITA Software Inc, The Wall Street Journal yesterday reported.

Citing people familiar with the matter, the paper said that the DoJ anti-trust  lawyers have begun preparing legal documents for use in a possible court challenge to the deal, but no decision to proceed has been made.

Federal anti-trust  lawyers have been examining whether the acquisition of ITA would give Google too much hold over the online travel industry.

Just a month after Google announced its proposal to buy ITA, the DoJ said that it is extending its investigation into the deal.

In July 2010, Google said that it would pay $700 million in cash to buy Cambridge, Massachusetts-based ITA in order to get a foothold into the fast-growing online travel industry. (See: Google to buy flight information software firm ITA Software for $700 million)

Several online travel firms have urged the US government to block the deal as it would give Google too much control over the online travel industry.

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