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Consumer Affairs

FTC May Be Considering Antitrust Probe of Google

Agency is reportedly waiting to see if Justice Dept. approves ITA travel software takeover


graphicIt may soon be a dark day at the Googleplex. Bloomberg News says the Federal Trade Commission is considering a broad antitrust probe of the search giant, which increasingly has extended its tentacles into a wide range of businesses.

The agency reportedly is waiting to see whether the Department of Justice will challenge Google's plan to acquire ITA Software for $700 million. That acquisition could limit competition in the travel sector, competitors have complained.

Google has claimed that its takeover of ITA Software will provide better, faster and more accurate flight information for consumers. But critics say the acquisition would put current data middlemen out of business and quickly create a monopoly for Google.

Travel industry players have formed Fairsearch.org to oppose the deal. Their website displays the slogan: “The Google/ITA Deal – Bringing consumers higher prices and less choice in online travel.”

Google's arch rival, Microsoft, has been doing all it can to marshall discontent and now says it plans to join a European Union antitrust action filed against Google by a number of smaller European search companies.

The European suit claims that Google uses unfair tactics to limit search competition, including the use of proprietary ad formats.

Google currently holds about 65% of the U.S. market share for search, far ahead of Yahoo and Microsoft, which have slightly less than 30%.

Google is also becoming a major force in mobile operating systems. Its Android operating system is expected to take nearly 36% of the worldwide market this year.

 

 

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