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Google’s proposed $700m acquisition of travel search outfit ITA Software is continuing to be probed by the US government, which could lead to the Department of Justice blocking the deal.

According to Bloomberg, which cites people familiar with the situation, regulators are mulling over bringing a possible lawsuit against Google.

In September, the DoJ stepped up its investigation into Google’s proposed buyout of ITA. It began examining two particular issues to consider if such an acquisition could be deemed anti-competitive.

Last month, Microsoft joined a group dubbed FairSearch.org, which was created to help persuade the DoJ to stop Google’s purchase of ITA.

Redmond’s Bing search engine uses ITA’s software for its travel service’s flight search information, hence the beef. ®

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