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Google's possible purchase of ITA Software Inc. may lead to an antitrust investigation

It's well understood that Google is the world's most popular search engine. The company runs over one million data centers and servers around the world, and is well known by computer users of all levels from beginners to professionals. But as of late, this success is being viewed as internet dominance by both the Federal Trade Commission and the Justice Department. 

Google is an American multinational public corporation that runs the world's most successful search engine, and also owns the Android operating system. The company is also involved in cloud computing and advertising technologies. It was incorporated as a privately held company in 1998, with its initial public offering in 2004. The company has grown tremendously over the years, and now processes over one billion search requests per day. 

Now, Google is looking to expand its presence even more by purchasing ITA Software Inc., which is an airline ticketing software company. This transaction will cost Google $700 million if it decides to go through with the purchase. 

But this purchase could cost Google more than just the $700 million. According to recent reports, the FTC is looking to launch an antitrust investigation of Google's internet dominance, but the investigation will be pursued only if the Justice Department decides whether it will challenge the ITA Software purchase. 

The FTC and the Justice Department are not the only agencies looking into Google's web dominance. Last November, the European Commission launched a similar investigation, and last week, Microsoft filed a complaint with European antitrust regulators because of Google's growing presence and power over web search competition. 

According to Bloomberg, the Justice Department is expected to announce its decision soon, but there is no set time or date at this point. 



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RE: What Competition?
By bah12 on 4/5/2011 12:41:56 PM , Rating: 2
While I agree with you that I see no anti-competitive actions going on, this is clearly a company that needs to be monitored. Not saying we need to regulate it, or that there dominant position is not justly earned, but that with that position comes the potential for abuse. IMO that is what government is for, NOT regulation for the sake of regulation, but to take a look and be sure everything is on the up and up.

Believe it or not ATT before the split were seen as a great savior too, for all of the infrastructure they put in connecting the nation. It revolutionized the way we communicated as a nation. Unfortunately they abused that position and justly needed to be dealt with.

I agree with you that simply being the best/most used is not a problem in and of itself, but I am not naive enough to assume they will always "do no harm". A federal probes or 2 now an then are justified IMO, and should be expected as normal course of business for a market share this large.


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