Google's next Deal

[Commentary] Antitrust regulators face a tough decision on whether to allow Google to buy ITA Software, a company that organizes online flight information.

Once it gets into that business, Google may well figure out brilliant new ways to help travelers organize and book vacations online. But Google’s dominance of online search — which allows it to steer users to certain Web sites and away from others — raises a real concern about the potential consequences of the deal. Google cannot abuse its dominance in search to shut out the competition. What would happen to the $80 billion-a-year online travel business if Google’s rivals were relegated to the nether reaches of its search results and it came to dominate the search for online tickets, too?

Regulators must consider that if Google extends its dominance to the business of steering online customers to airlines and travel agencies, it would be in a position to charge more for this service. Without strong competitors to keep it in check, it might offer preferential placement to some airlines or agencies for a fee, or not list offers from companies that didn't pay up. This could lead to higher costs for agencies, airlines and passengers.