Wednesday, December 15, 2010

Microsoft (Nasdaq:MSFT) Joins Battle Against Google's (Nasdaq:GOOG) ITA Bid

Microsoft (Nasdaq:MSFT) has joined the growing opposition to Google's (Nasdaq:GOOG) proposed acquisition of ITA by joining FairSearch.org.

“As an ITA Software customer, Microsoft’s ability to continue providing innovative ways for consumers to find the best flights at the lowest prices online rests on a competitive market for travel technology,” said Jack Evans, a Microsoft spokesperson. Evans also indicated that the primary objection Microsoft has to the proposed Google-ITA merger is that it “could hurt travelers by slowing innovation and contributing to higher travel costs,” said Microsoft in a statement.

Google shot back saying there was no surprise in what Microsoft did.

Google spokesman Adam Kovacevich said in statement, “Microsoft is our largest competitor and lobbies regulators against every acquisition we make." He added taht Google ownership would “provide consumers with better flight search tools and more choices and drive more traffic to travel websites.”

Other companies part of FairSearch.org include Travelocity, Foundem.com, Kayak.com and Expedia.

On the other hand, Priceline and Orbitz have supported the Google acquisition attempt.

The U.S. Justice Department is investigating whether or not the acquisition would violate antitrust laws.

Google offered $700 million for ITA, which is an online flight-search firm.

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