FTC Focuses Probe on Android, Web Search

Editor’s Note:  The following article from The Wall Street Journal indicates that indicates that the Commission’s inquiries into internet-related emerging technologies may extend to “smart phone” operating systems. 

By THOMAS CATAN And AMIR EFRATI

Federal Trade Commission officials are focusing their antitrust investigation on several key areas of Google Inc.’s business, including its Android mobile phone software and Web search related services, people familiar with the probe say.

Six weeks after serving Google with broad subpoenas, FTC lawyers, in conjunction with several state attorneys general, have been asking whether Google prevents smartphone manufacturers that use its Android operating system from using competitors’ services, these people said.

They also have inquired whether Google grants preferential placement on its website to its own products, such as Google’s “Places” business listings, its “Shopping results” or Google Finance services above most other results.

And they’re looking into allegations that Google unfairly takes information collected by rivals, such as reviews of local businesses, to use on its own specialized site and then demotes the rivals’ services in its search results, the people said.

When the FTC probe first became official in June, Google said it wasn’t clear what the agency was concerned about. But the early focus of the investigation suggests a potential threat to Google’s plans to expand its commercial success beyond its current cash cow: the Web-search engine.

The European Commission, which has imposed restrictions on Microsoft Corp.’s ability to leverage its dominant computer-operating system to promote other services, has been carrying out its own broad antitrust probe of Google since last year.

Google denies that it engages in unfair or illegal competitive practices. The company has suggested that the growing number of antitrust investigations have been spurred by rivals unsettled by its aggressive push into new business sectors.

“We understand that with success comes scrutiny,” said a Google spokeswoman. “We’re happy to answer any questions they have about our business.”

An FTC spokeswoman declined to comment.

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