Several online travel sites launched a coalition Tuesday to shoot down Google’s (GOOG) proposed $700 million buyout of flight search technology developer ITA Software, issuing a mayday to federal antitrust regulators to challenge the deal.

Online travel site operators Expedia (EXPE), Farelogix, Sabre Holdings and Kayak have formed FairSearch.org, marking one of those rare situations where competitors have teamed up as a collective group to fight what they believe is a greater menace to their business.

ITA Software provides flight search technology to some of the members of the coalition and their brands like Expedia’s Hotwire and travel search provider Kayak. ITA also powers 65% of all U.S. carrier-direct online flight searches and six of the top 10 airline carriers such as American Airlines (AMR), Continental Airlines (UAL) and Southwest Airlines (LUV).

“ITA plays a crucial role in online flight search and has been a key driver of competition and innovation in online travel,” said Thomas Barnett, Expedia’s attorney and former head of the Justice Department’s anti-trust division, in a statement. “The Justice Department needs to thoroughly investigate the proposed acquisition and to take whatever action is necessary to prevent harm to consumers in online flight search as well as online travel search more generally.

The coalition apparently is not the only entity calling on the Justice Department to intervene, according to a Wall Street Journal report. Microsoft (MSFT) has also apparently been talking to the DOJ about the Google-ITA deal. The software giant also relies on ITA to power its travel-related searches, noted the Journal.

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Some carriers, the Journal notes, have expressed their concerns privately due to a lack of reassurances from Google. In addition to the carriers, members of the coalition expressed concerns they won’t be allowed to renew their contracts, nor receive upgrades to the software, according to the Journal.

Google, however, contends that all of ITA’s existing agreements will be honored once the deal goes through, and while it does not explicitly say it will renew those agreements once they expire or offer upgrades, it notes it is “enthusiastic” about adding new partners, according to the company’s blog post.

Source:http://www.dailyfinance.com/story/travel-sites-fly-in-formation-to-ground-google-buyout-of-ita-sof/19689776/

Google is looking to make yet another acquisition, which is hardly news. Someone isn’t happy about it, which also is hardly news. But these “someones” plan to challenge Google in court. That’s news.

Google recently proposed to acquire ITA Software, Inc., a provider of travel software solutions including flight data engines. The Cambridge, Mass.-based company builds (among other things) reservations software that many companies license to use on their own travel websites; according to ITA, its software handles about 65 percent of direct, online air-travel bookings for airlines.

Customers include online travel companies such as Kayak, Orbitz, TripAdvisor and FareCompare.com, and many airlines such as American Airlines, Continental, Southwest and United, for starters. Microsoft’s Bing search engine is also a user of ITA solutions.

Many of ITA’s clients are not happy about the acquisition, fearing a Google monopoly over essential tools for their business. According to an article in today’s Wall Street Journal, Expedia , Kayak.com, Sabre Holdings and Farelogix, Inc. — which together operate half-a-dozen online travel sites — are forming a coalition called FairSearch.org to persuade the U.S. Justice Department to block Google’s latest deal.

Though Microsoft, via its Bing search engine, hasn’t signed onto the coalition, it has reportedly expressed concerns to the Justice Department over Google’s intended purchase and the monopoly that might result.

According to the WSJ article, opponents of the deal worry that Google could limit access to ITA’s software, which is used by many of the flight-comparison sites operated by the members of the newly formed coalition. Expedia also runs Hotwire and TripAdvisor. Sabre runs Travelocity, while Kayak runs SideStep in addition to Kayak.com.

Google has responded to the allegations by explaining that its purchase of ITA will help it provide more useful information to consumers when they search for flight data.

It seems pretty clear that many Web businesses are getting increasingly nervous over Google’s reach. According to the WSJ, opponents of the deal are also citing what they view as Google’s power over an ever-expanding array of businesses as it reaches into sectors from broadband Internet to mobile telephony and now travel.

As Google has been estimated as the source of more than 30 percent of all search engine traffic to online travel sites, many companies fear that with the acquisition of ITA, Google might be tempted to direct traffic its own way.

“Google has tremendous power in the search market, and it gives Google the ability to steer users in directions that are best for Google,” Expedia’s counsel, Thomas Barnett, told the the WSJ. “All of that would ultimately end up harming consumers.”

Source:http://ipcommunications.tmcnet.com/topics/ip-communications/articles/111603-googles-proposed-acquisition-travel-software-company-prompts-lawsuits.htm

The internet giant Google has almost stepped into all markets and they are about to buy one of the Web’s key providers of airline travel software. According to the reports it seems the World No: 1 search engine is in an agreement to buy ITA software which could cost around $700 million. Sources also add that Google are about to pay the whole amount in cash and this would allow Google to enhance flight and fare information searches online which would surely grab more users towards Google.

However Google said that they are in no plans to sell air tickets as of now and added that they will honor all existing agreements that ITA has with its partners. ITA is holding hands with severl companies and partners and are providing information to all major airlines and online travel agencies, which includes American Airlines, Continental Airlines, Kayak, Orbitz, Southwest Airlines, TripAdvisor, United Airlines, US Airways and Virgin Atlantic Airways. The move has been made to overcome Bing who recently relaunched their search engine.

Source:http://www.thedailytechnews.com/google-get-hold-with-travel-software-company-0506.html