DOT feels Orbitz could harm competition

While Orbitz has helped competition in the travel marketplace, the company could "harm" competition in the airline industry, according to a federal review Thursday. "To date, Orbitz has had some pro-competitive effects in the marketplace and has brought some benefits to consumers," read a report issued by the Department of Transportation. "Orbitz could, however, evolve in ways that could harm airline competition, and the potential for concern still exists." The report does not come to any definitive conclusions or recommend any action on Orbitz, a Chicago-based company formed by five major airlines. The review into whether Orbitz violated antitrust laws was given to the department's inspector general this week. The inspector general now has three months to issue recommendations to Congress. DOT spokesman Bill Mosely said department officials are waiting for the Department of Justice to conclude a separate probe on antitrust issues regarding Orbitz before it issues any recommendations. "They wanted to wait to avoid any contradictions between the two reviews," Mosely said. Orbitz Chief Executive Jeff Katz said he was "pleased" with the announcement. "After once again fully reviewing Orbitz's business practices, the Department of Transportation has again found no evidence of any anti-competitive effect and, in fact, has found that Orbitz has benefited consumers and promoted competition in the travel marketplace," Katz said. --Greg Sandoval, Special to ZDNet News