Let?s Calm Down On The Google-ITA Deal

This guest post is written by Daniel A. Crane, who is Professor of Law at the University of Michigan Law School. He is an expert in antitrust law. Google?s proposed acquisition of ITA Software, which provides a management system for airfare pricing and shopping services, has become ground zero for the burgeoning coalition of interests intent on stopping Google?s perceived dominance in Internet search. The Justice Department is reviewing the deal and is reportedly preparing to block it if Google does not agree to substantial concessions. Meanwhile, an anti-Google coalition has made stopping the acquisition its Maginot line. The ?FairSearch? coalition, consisting of a host of anti-Google forces including Microsoft, TripAdvisor, Expedia, Kayak, and Hotwire, presents the ITA deal as Exhibit A on its website, warning that the deal will bring ?consumers higher prices and less choice in travel.? These claims are overblown. Google?s competitors naturally fear Google?s emergence as a formidable rival in travel search, but that is hardly a reason to block the transaction. Indeed, it?s a reason to approve the deal. The most likely scenario is that Google?s acquisition of ITA would allow Google a quick and efficient entry point into travel search that would expand consumer options and increase rather than decrease competition.

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