Microsoft doesn’t like Google’s plan to acquire ITA Software. In fact, the software giant is taking issue with it publicly by joining the FairSearch.org coalition. Microsoft is the latest to join the effort, which was launched in October to support competition, transparency and innovation in online search.
Microsoft will join FairSearch.org in urging the U.S. Justice Department to challenge Google’s proposed acquisition of ITA, the flight-search technology that powers many of the web’s most popular travel sites. Foundem, Level…com (levelfrance.com), and Zuji have also joined the coalition. Existing members include Expedia, Farelogix, Kayak and Sabre Holdings, which owns Travelocity.
“Competition in online travel search over the last decade has not only created more choices and innovation for travelers, but has also driven prices lower around the world for consumers,” said Roshan Mendis, president of Zuji. “We are concerned that less competition in flight search in the U.S. will result in less innovation in travel search globally, and, more importantly, less pressure on travel service providers to offer the lowest price for consumers regardless of where they are located.”
Too Much Control?
ITA provides the technology behind 65 percent of all online flight searches at airline web sites in the U.S., and its flight search software powers six of the top 10 air carriers in the U.S. ITA customers include American Airlines, Continental Airlines, Hotwire, KAYAK, Orbitz, Southwest Airlines, TripAdvisor, United Airlines, US Airways, and Virgin Atlantic.
Google offered $700 million in cash for ITA Software in July. At the time, Google said the acquisition would benefit passengers, airlines and online travel agencies by making it easier for users to comparison shop for flights and airfares and by driving more potential customers to airlines’ and online travel agencies’ web sites. Google also said it would honor all existing agreements with ITA clients, and the…