Google (GOOG) Cleared for ITA Deal

Google (NASDAQ:GOOG) won a big victory today as it has been cleared by the U.S. Department of Justice to acquire flight-data company ITA Software Inc.

There were several concessions the DoJ extracted from Google in order for the deal to be allowed to go forward.

Google must continue to license ITA's software to airline-ticket search and booking sites, and it is required to continue to fund research and development of that software at levels that are similar to ITA's investments in past years.

The settlement also requires that Google further develop and offer ITA's next-generation software to travel websites.

Google also must implement internal firewalls that prevent the unauthorized use of sensitive information gathered from ITA's customers.

ITA is being acquired for $700 million by Google.

Google was trading at $581.68, gaining $1.68, or 0.29 percent, as of 2:18 PM EDT.

Google (GOOG), Justice Close to Settlement Over ITA Acquisition

Google (NASDAQ:GOOG) and the Justice Department are close to reaching a settlement over the ITA Software acquisition, according to people familiar with the situation, as an agreement will keep the matter from a court challenge.

At this time the proposed agreement isn't finalized, but if it eventually reaches that stage, there will evidently be some antitrust monitoring of Google's operations by the government.

Under terms being discussed, Google would continue to provide services from ITA to its competitors under "fair and reasonable terms."

Of course it's the details of how that is defined that will determine the outcome of a settlement. If there is too much interference, Google could just walk away from the acquisition or battle it out in court.

Among competitors opposing the acquisition are Microsoft (NASDAQ:MSFT) and Expedia Inc. (NASDAQ:EXPE).

Altria Group (NYSE:MO), Lorillard (NYSE:LO), Reynolds American (NYSE:RAI) Battle Back Against Justice Department

Cigarette manufacturers Altria Group (NYSE:MO), Lorillard (NYSE:LO) and Reynolds American (NYSE:RAI) are fighting back against proposed requirements of the Justice Department in a lawsuit that has been going on for 12 years.

The nation's largest cigarette manufacturers on Thursday said the Justice Department's proposed corrective statements about smoking's dangers are inflammatory and inaccurate and violate guidelines set by the court overseeing the lawsuit.

The tobacco companies, including Philip Morris USA, maker of top-selling Marlboro cigarettes, also asked a U.S. district judge to toss out the 12-year-old lawsuit, saying the Food and Drug Administration's authority over the industry makes the court's involvement unnecessary.

Last week, the Justice Department released 14 "corrective statements" that it says the companies should be required to make as part of the lawsuit. It wants the companies to admit that they lied to the public and would force the industry to pay for an advertising campaign of self-criticism.

But the companies said the proposed statements don't meet the court's requirements that the statements be "purely factual and uncontroversial." They also said the proposed statements are "plainly designed soley to shame and humiliate" the companies.




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