Ruling could hamper antitrust enforcers in future cases

A Delaware federal judge rejected the Justice Department’s challenge of a deal in which travel-booking service Sabre SABR +11.88% Corp. is seeking to acquire an industry upstart, a stinging ruling that could hamper antitrust enforcers in future cases.

U.S. District Judge Leonard Stark, in a decision made public Wednesday, ruled the department failed to prove that Sabre’s planned purchase of Farelogix Inc. would unlawfully suppress competition.

Texas-based Sabre is the lead booking service for travel agents. The Justice Department said Miami-based Farelogix has newer, better flight-booking technology that is providing important competition and bringing benefits to airlines and consumers. Many industry participants supported the merger, but others including American Airlines Group Inc. and United Airlines Holdings Inc. didn’t.

Sabre argued that it and Farelogix offer complementary products, and combining them would drive faster innovation that serves airlines and travelers.

Excerpt from WSJ
Read the full article