Google’s ITA Software Takeover to Be Challenged Legally by the US Government

Google’s ITA Software Takeover to Be Challenged Legally by the US Government

2/11/2011

The US Justice Department is getting ready to mount a legal challenge against the online giant Google. This developed after Google acquired ITA Software Inc, a flight information software firm, according to the report made available by The Wall Street Journal.

Citing anonymous sources that are familiar with the matter, Wall Street Journal reported that the anti-trust lawyers of the Justice Department are now preparing their legal briefs. The report continued that the legal documents being prepared by government lawyers are to be used in a potential court challenge to the deal. However, the decision whether to proceed with the legal challenge or not has not been made yet.

Federal anti-trust lawyers are reportedly busy examining whether the acquisition of the flight information software firm, ITA Software Inc, would give Google too much power over the online travel industry.

After just a month from the time Google announced its intention to buy and takeover ITA Software Inc, the US Justice Department said that it is also extending its investigation into the details of the deal.

In July of last year, Google has declared that it would pay a staggering $700 million in cash to buy the Cambridge, Massachusetts-based ITA Software Inc. Among the reasons mentioned by Google as to why they are making the purchase is that they wanted to secure their position into the rapidly-growing online travel industry.

The takeover of ITA Software Inc by the Internet giant has caused some bit of apprehension and worry among a number of online travel firms. This prompted them to urge the US government to block the deal because it could potentially give Google too much power over the online travel industry.

WRITTEN BY:

blakeh@wellsdrew.com