JUSTICE DEPARTMENT SUES TO BLOCK SABRE’S ACQUISITION OF FARELOGIX
September 26, 2019
On August 20, 2019, the U.S. Department of Justice filed a civil antitrust lawsuit in the U.S. District Court of Delaware to block Sabre Corporation’s $360 million acquisition of Farelogix, Inc. DOJ alleges in its complaint that the acquisition would eliminate a head-to-head competitor in the airline service booking market. Both Sabre and Farelogix provide IT solutions to airlines that allow them to sell tickets and ancillary products through traditional brick-and-mortar and online travel agencies to the public. DOJ argues that if Sabre acquires Farelogix, it will lead to higher prices and less innovation for airlines and their customers.
Sabre operates a global distribution system (GDS) and is the dominant provider of booking services in the U.S., with over 50 percent of the booking through travel agents market.
Sabre issued a statement saying that it has done all it could to address DOJ’s concerns during its nine month review of the acquisition, which it argues is pro-competitive as the companies offer complementary services.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com or 202-659-6622); Drew Derco (dderco@eckertseamans.com or 202-659-6665), or Alexander Matthews (amatthews@eckertseamans.com or 202-659-6633).
Share This Post
Authors
