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US competition body calls for Google ITA probe

Google’s takeover of flight-information provider ITA Software would give the search giant a dominant position in sectors beyond the online travel market and requires broad investigation, according to a US competition body.

The American Antitrust Institute (AAI), a pro-competition think tank, called for a wide review of Google’s $700-million acquisition of ITA in a report issued on Friday.

The deal, announced last July, is under review by the US Department of Justice which is negotiating with Google on terms that would allow the purchase to go ahead.

AAI President Bert Foer said: “The transaction raises broad questions of competition policy concerning Google’s rapid growth as a one-of-a-kind firm.”

He suggested government efforts to protect against the manipulation of search algorithms by Google were “likely to be ineffective” and said there is a risk that “Google may acquire market power in the online travel search market or the technology input market, along with the risk that Google’s control of ITA would lead to foreclosure or other exclusionary effects”.

Google said at the time the takeover was announced that it aimed to develop flight-search tools and expected a “significant review” of the deal.

ITA provides airline reservation technology to online travel retailers including Orbitz, which is at the centre of a legal dispute between American Airlines and global distribution system-owner Travelport.

The US Justice Department is expected to require that Google guarantees to make ITA technology available to other online companies. Rivals query the value of such a guarantee.

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