Google gets conditional OK to buy ITA

WASHINGTON, April 8 (UPI) -- The U.S. Justice Department said Google Inc. could go ahead with a purchase of ITA Software, with conditions.

Google offered to buy ITA in July for $700 million. ITA makes software that helps travel agencies and airlines compare ticket prices.

It is licensed by Orbitz, Kayak, American Airlines, United Airlines and Microsoft's Bing Travel, The New York Times reported Friday.

Some companies feared Google would pull software out of reach or spy on companies that used it in order to develop a superior product for itself. But Google said it would continue to make the software available and develop new products.

"The proposed settlement assures that airfare comparison and booking websites will be able to compete effectively, providing benefits to consumers," Deputy Assistant Attorney General Joseph Wayland said a statement.

With the agreement, which will be in place for five years, Google will not be allowed to monitor how other companies use the software. Google also agreed to develop new ITA products and make complaints about the acquisition available to regulators.

"We indicated last July that we would honor ITA's existing contracts. Today we've formally committed to let ITA's customers extend their contracts into 2016," Jeff Huber, Google's senior vice president for commerce and local, wrote in an online posting.

"It's a victory for both sides, because the parties get to go ahead with the merger and the Justice Department gets to go to the public and say, 'We've protected you from the anti-competitive possibilities,'" said University of Iowa College of Law Professor Herbert Hovenkamp, an expert in antitrust law.