The world’s largest web-search company, Google, is under a serious FTC (Federal Trade Commission) probe.  The FTC is about to hit Google, Inc. with subpoenas, launching one of the broadest investigations into whether Google abused its dominance in web-search advertising.

What Is The Google Lawsuit About

The FTC investigation is focusing on the fundamental issues relating to Google’s core search advertising business.  This includes whether Google unfairly channels users to its own network of searches at the expense of rivals.  While this might not be as big of an issue with a smaller search engine company, Google accounts for about 2/3 of all U.S. Web searches in the U.S. and over 80% of searches in Europe.

This investigation comes on the heels of public complaints from sites like Expedia and TripAdvisor as well as WebMd claiming that Google promotes links to its own services, like Google Local, which deprives them of potential traffic.  Some independent websites have also complained that sites like Google Places aren’t subject to the same rules that govern outside websites.  Others contend that Google abuses its dominance to control other markets, like mobile phones and airline travel.  The bottom line is that many believe the “natural” search result is anything but natural.

The FTC isn’t the only body investigating Google.  In November, the European Commission opened its own formal investigation into whether Google violated European competition laws.  The Texas attorney general has also opened a probe into Google.  The attorney generals in New York, California and Ohio have also started preliminary probes of Google.

What Does Google Say About The Lawsuit?

Obviously, Google is at least partially uneasy about a large FTC investigation, but they feel that the complaints are directed more at the effectiveness of their business than on any anti-competitive practices.  Two Google Executives said, “Given our success and the disruptive nature of our business, it’s entirely understandable that we’ve caused unease among other companies and caught the attention of regulators.”  They also suggested that complaints may be orchestrated by Microsoft, which filed an antitrust complaint against Google with European authorities.  Google has been wary of the FTC since it blocked a deal with Yahoo in 2008 that would have given Google advertising a 905 hold on relevant markets.

What do you think?  Does Google push you to its advertisers?  Do you think Google Places is unfairly taking advantage of searches?