Google's travel pursuits could hit regulatory roadblock

Google Inc. may finally be nearing its Microsoft Corp. moment — at least in terms of government interest and intrusion.
Other deals for acquired companies have run up against regulatory hurdles in the past, but this time around it could be Google’s ongoing pursuit of ITA Software that lands it in court over antitrust concerns.
“The Obama Administration, which early on promised more aggressive antitrust oversight than its predecessor, is under pressure to deliver on that pledge. Google could be on the way to becoming the new Microsoft,” Jeffrey Silva, senior policy director of telecommunications, media and technology at Medley Global Advisors, wrote in a research note.
Not only does Google run the risk of being required to make concessions in order for its $700 million bid for the travel software company to go through, any significant moves by the Department of Justice could put Google under a new light with more perceived risk for legal challenges.
An outright approval of the deal with no strings attached is unlikely, according to Silva. If anything, Google’s potential stake in the $80 billion online travel business is enough to cause pause.
Online travel firms that have grouped together to oppose Google’s deal, contend that at least 30% of all travel searches begin with a Google search and travel-related advertising already account for as much as 10% of the company’s global revenues.
All of this jockeying for position and political points comes as the mobile equation in travel hits a new dynamic chapter. Some airlines are trying to reclaim control over flight queries and sales, prompting boycotts by some travel search sites. Meanwhile, new startups like Hipmunk and HotelTonight are directly challenging the online incumbents and rolling out mobile applications to reach the untethered masses that may not be wedded to any particular player in the travel space.