The US DoJ leaves the door open to offering proof that harm to innovation in the market for airline bookings is separate and independent basis to block a merger (Sabre / Farelogix)

In its recent complaint challenging the $360 million acquisition of Farelogix by Sabre, the Department of Justice (“DOJ”) appears to have left the door open to offering proof that harm to innovation in the market for airline bookings is a separate and independent basis to block the merger. When the case goes to trial in January 2020, watch to see if DOJ uses this case to provide a roadmap for the evidence and analytical tools to analyze innovation effects in a technology merger. The Sabre/Farelogix Lawsuit The DOJ complaint alleges that Sabre’s acquisition of Farelogix is a “dominant firm’s attempt to eliminate a disruptive competitor after years of trying to stamp it out.” Sabre operates the largest global distribution system (“GDS”) in the United States. A GDS is a computerized system

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Authors

  • Orrick, Herrington & Sutcliffe (Washington)
  • Orrick, Herrington & Sutcliffe (Washington)

Quotation

Emily Luken, James J. Tierney, The US DoJ leaves the door open to offering proof that harm to innovation in the market for airline bookings is separate and independent basis to block a merger (Sabre / Farelogix), 20 August 2019, e-Competitions August 2019, Art. N° 95171

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