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FairSearch Attempts to Hinge Google’s ITA Purchase

Google is attempting to buy ITA, the company that provides airline flight data for roughly sixty-five percent of all websites, for the the price tag of $700 million. However, a coalition known as FairSearch.org — a group established in October “to support competition, transparency, and innovation” in the web search industry — is attempting to prevent this acquisition.

A number of travel agencies, including major sites like Expedia, and competing search groups like Microsoft are a part of this coalition. The ITA acquisition presents a fairly clear risk. These travel sites, as well as several vertical search engines, rely on information from ITA when providing data for potential customers. By handing the reigns over to Google, the search engine gains a position of power over sites that could be considered competitors.

Even more threatening is the idea that Google may start selling tickets directly, shutting out travel sites and creating an atmosphere of one-sided competition. In FairSearch’s statement, they claim that this move from Google will increase prices, decrease fairness to consumers, and diminish innovation in the industry.

However, Google denies these allegations. It claims that the role of its ITA purchase will be to make flight data displayed on its site more accurate and accessible. Google currently displays flight information accompanied by links to Expedia, Travelocity, Priceline, Orbitz, Hotwire, Kayak, and CheapOair, and doesn’t sell any end-products itself. The search engine giant has remained steadfast in its claim that the model will not be altered — they will simply continue to redirect searchers to other sites to book actual flights.

So what’s in it for Google? Simply put, advertising dollars in the travel industry, which make up about six percent of all total investment in advertising. By drawing more people to the site for travel purposes, Google is able to get revenue off the high-bid CPC advertisements displayed after travel search queries.

One Response to “FairSearch Attempts to Hinge Google’s ITA Purchase”

  1. Derya Yilmaz says:

    thank you for ur posting. it is useful for me.

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