Google is close to buying ITA for $ 700 million
This year, Google was about to spend several billion dollars on the purchase of various companies and startups. Several planned transactions have already been completed, but one of the most ambitious transactions still does not take place. We are talking about the company ITA Software, which develops software for searching for airline tickets. Google became interested in the company back in July last year, but US antitrust monitors suspended the deal to conduct its own investigation into it.
Last year, the US antitrust services began to act after a series of complaints from Microsoft and other companies who believed that if Google made a deal, then competition in the field of buying airline tickets online would end. Perhaps these companies were not so wrong, and regulators are still checking. True, there was information that the results of the audit may be announced if not this week, then the next one for sure.
There are two scenarios. In the first Google, however, receives permission to conduct this transaction, and ITA Software becomes part of the corporation. In this case, the company’s search engine may soon receive information relevant to the user's request on the cost of tickets for various flight directions and other information. In general, such a scenario really threatens the business of other companies that also sell airline tickets on the Web.
There is a second scenario: the US Federal Trade Commission (FTC) prohibits the transaction. In this case, there is a very high probability of a large-scale antitrust investigation of the Google case by the regulator. About 10 years ago, Microsoft experienced the effects of the US legislative machine, but it seemed to have escaped with a slight startle (except that Gates had to resign from the post of Microsoft CEO). Then Microsoft threatened to split into several parts.
The situation is quite tense, but Google believes that everything will end well, because the company "works for users."