The Federal Trade Commission (FTC) in the US will investigate into allegations that the search engine company has used its Web-search dominance to influence advertising, according to reports.
The Wall Street Journal has reported, citing people familiar with the matter, that Federal regulators are expected to issue subpoenas to Google in a few days.
The investigation is considered to be the most serious Google has ever faced.
Both Google and the FTC have not commented on the matter so far.
Google, owing to its search, leads the US online ad spend market with nearly 41% in 2011, according to the latest data from digital intelligence company eMarketer.
Yahoo came a distant second in the list with 11%, while Facebook, Microsoft and AOL accounted for the other three spots in the top five with 7%, 6.1% and 2.7% respectively. The five companies accounted for 67.7% share in 2011, further consolidating their strength from 2010’s 65.6%.
In April this year, Google was given the clearance for its $700m purchase of ITA Software, with restrictions. The US Justice Department anti-trust division had asked Google to report any complaints it receives from companies that are directly or indirectly related to the proposed settlement. It also said that Google will be monitored for anti-competitive behavior including manipulation of search results.
A group of companies that under the name FairSearch, which had challenged Google over the ITA deal, has now said that it is pleased with the reports.
In a statement, the group said, "The members of FairSearch.org are encouraged by reports that the FTC is preparing to launch a broad antitrust investigation into Google’s business practices."
"Google engages in anti-competitive behavior across many vertical categories of search that harms consumers by restricting the ability of other companies to compete to put the best products and services in front of Internet users, who should be allowed to pick winners and losers online, not Google," it added.
The group also said that Google’s practices are deserving of full-scale investigations by US antitrust authorities, and are already the subject of reviews by the European Commission, and the Texas Attorney General.
