US FTC investigating Google's dominace of the Internet search industry

WASHINGTON: The US Federal Trade Commission is preparing an investigation of Google Inc's dominance of the Internet search industry by alerting high-tech companies to gather information for the probe, three people familiar with the matter said.

The agency told the companies that it plans to issue so-called civil investigative demands for the information, said the people, who requested anonymity because the FTC hasn't made the matter public. The demands are similar to subpoenas.

The FTC, which has been considering a broad investigation, waited until the Justice Department concluded its own review of Mountain View, California-based Google's acquisition of ITA Software Inc., two people familiar with the matter said earlier this month.

The Justice Department on April 9 approved Google's $700 million purchase of ITA on the condition it makes travel data available to search-engine rivals and lets the government review complaints that it's acting unfairly.

An FTC investigation "has the potential to be very significant," Eleanor Fox, a law professor at New York University, said in an interview. "It could be 'Google as the next Microsoft'," Fox said, referring to the Justice Department probe and lawsuit settlement involving the Redmond, Washington- based software maker. The final judgment in the Microsoft case expires next month.

A Google spokesman, Adam Kovacevich, declined to comment. Cecelia Prewett, an FTC spokeswoman, also declined to comment, saying that she doesn't confirm investigations.