Airline-owned website Orbitz has ‘not harmed consumers or reduced competition’ the anti-trust division of the US Department of Justice has ruled.
Assistant attorney general R. Hewitt Pate said that an investigation into the website showed that complaints about airline collusion, reduced competition, higher fares and market dominance had been proved foundless.
The investigation focused on the “most favored nation” (“MFN”) agreement among the owner airlines and “charter associates” of Orbitz that they will market through Orbitz any publicly available fares they offer through either their own or third party websites. The DOJ concluded: “After a lengthy and thorough review, the Antitrust Division has determined that the evidence does not show that Orbitz has reduced competition or harmed consumers.”
Orbitz President & CEO Jeff Katz said: “This is a great victory for Orbitz. We are grateful for the DOJ decision. We have always maintained that Orbitz has invigorated competition in the online travel industry to the benefit of consumers and travel suppliers.”
Orbitz is owned by the five dominant US carriers: American Airlines, Continental, Delta, Northwest and United.
