Besides being known as a powerful search engine, Google Inc. branched from Internet and broadband to the mobile industry and now wants to grasp traveling. Announcing this, Google Inc. created enemies, as numerous online travel companies created a coalition called Fair Search.org in hopes of persuading the Justice Department to forbid Google’s deal. FairSearch.org was formed by the partnership of Expedia Inc., Kayak.com, Sabre Holdings and Farelogix Inc; the leading companies in the online traveling.
Google Inc. wants to purchase the ITA Software Inc, the $700 million. ITA Software is fundamental because it is the leading informer about flights data. By allowing this deal to be conducted, Google will have total control over the travel sector. Not surprisingly, Microsoft Corp. also opposes the transaction saying that their search engine Bing relies on ITA for its travel searches. By allowing Google to purchase it, Bing will be hurt drastically because Google Inc. can set limitations on travel data since it would own ITA.
Statistically, ITA owns 65% of direct online information. ITA software helps online booking as well as comparing different online travel agencies for best prices. Google, on the other hand, without buying the ITA’s software already owns more than 30% of all search engines for those sites. Is FairSearch.org than right to rally against the deal? By concurring the deal, Google would then own 95% completely owning the industry once again. If the deal does occur or not, what will Google try to branch out to next?
Maria:
ReplyDeleteI have no idea how any of these other companies can now stand up to the monster that is becoming Google. To that extent, it reminds me of an online auctioning service trying to take over eBay! Only the most loyal users of Expedia and other online travel companies will not join Google's dominant internet market that has now most recently extended to online traveling.
How can these companies pull in more users when the Google giant is "infecting" all of the markets of the internet? I would have to view the glass as half-empty with regard to non-Google travel agency companies.
ReplyDeleteGoogle is not opening its own online traveling site instead it is buying the software that combines them all. Meaning, that loyal customers is not a factor. The problem that they are facing is restrictions that Google can implement on their websites (them being Expedia etc) if Google seals the deal with ITA Software. Furthermore you are right Sev about viewing the glass as half-empty; Google is attempting to dominate every technological industry. If Google doesn't win this particular deal, what will it try and control next?
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