WASHINGTON: The U.S. Justice Department sued on Tuesday to block travel technology firm Sabre Corp's US$360 million acquisition of Farelogix Inc, saying in court papers that it was a"dominant firm's attempt to eliminate a disruptive competitor."
"If allowed to proceed, the acquisition would likely result in higher prices, reduced quality, and less innovation for airlines and, ultimately, traveling American consumers," said Makan Delrahim, who heads the Justice Department’s Antitrust Division in a statement. The suit says Sabre was"so threatened" by Farelogix's next-generation technology standard that in 2013 it urged the U.S. Transportation Department to block approval of the standard. It cites text messages between Sabre executives that the deal would"entrench us more."Nearly 50 percent of airline bookings in the United States are made through travel agencies, the government said.