The US Department of Justice has sent Google a request for additional information as part of their scrutiny of the search giant’s proposed purchase of Motorola Mobility.
As with any deal of this magnitude, the DOJ must conduct an investigation before it can be finalized. In addition, the Federal Trade Commission may have a say in the matter.
Google Senior Vice President David Drummond announced the DOJ request on the company’s Public Policy blog, writing, “Today we received what is called a “second request,” which means that the DOJ is asking for more information so that they can continue to review the deal.”
He added that he doesn’t believe there is any reason to believe the Justice Department will not approve the sale.
However, that doesn’t mean there won’t be additional hurdles to clear before everything is said and done. At a US Senate antitrust hearing last week Google’s Erich Schmidt faced hostile legislators who accused Google of anticompetitive behavior.
Even though the hearing was focused on their search business, more than one Senator intimated Google uses the Android OS primarily to further their dominance.
With national elections for the US presidency and more than half of all legislators coming up next year, political pressure and grandstanding could easily lead to significant delays.
Result for: department of justice
The Department of Justice has approved Google’s $700 million purchase of ITA Software, the world’s largest flight data company.
As part of the approval, Google must accept certain restrictions, however.
The major restriction is that Google must continue to license ITA software to airfare sites “on commercially reasonable terms” and Google must promise to continue enhancing the software “in a manner consistent” with ITA’s development over the past decade.
Google must also use an internal firewall that will block the company from gaining “competitively sensitive information” off of ITA customers.
Says the DOJ (via CNN):
The Department of Justice’s proposed remedy promotes robust competition for airfare websites by ensuring those websites will continue to have access to ITA’s pricing and shopping software.
ITA software organizes flight data like times, prices, availability and more, and is used on sites like Kayak, Orbitz, Expedia.com, TripAdvisor and Bing, among others.
Result for: department of justice
Google has said this weekend that the Department of Justice (DOJ) has filed a second request for information in regards to the search giant’s bid to purchase ITA Software for $700 million.
ITA software is the company behind flight information software used by Bing, Kayak and Orbitz among others.
The software helps users search for flights, compare flight options and prices, and ultimately purchase tickets.
Google has no such software built-in to its search engine, and in that respect, Microsoft’s Bing has the advantage.
Kayak and Orbitz voiced concerns that after the purchase, Google could shut off ITA information to them. Google has said it will not do anything of the sort.
Google responded to the second request: “While we think this acquisition will benefit travelers as well as those seeking their business, we know that closer scrutiny has been one consequence of Google’s success, and we said that we wouldn’t be surprised if there were a regulatory review before the deal closes. This week we received what’s called a “second request,” which means that the U.S. Department of Justice is asking for more information so that they can continue to review the deal.”
Past “second requests” have historically meant that the DOJ is concerned about the impact the deal will have on an industry.
