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Google Under Investigation By the Federal Trade Commission

BY Nick Judd | Friday, June 24 2011

The Federal Trade Commission is investigating Google's business practices, the company announced today. Politico has been tracking the story since April, and covered this morning's announcement.

"Yesterday, we received formal notification from the U.S. Federal Trade Commission that it has begun a review of our business," Google announced on its blog. "We respect the FTC’s process and will be working with them (as we have with other agencies) over the coming months to answer questions about Google and our services."

Politico's Mike Zapler reports that the FTC investigation is driven by claims that Google is using its sizable market share in search and search advertising "to punish competitors and enter new markets."

This news comes as Google is becoming an increasingly common partner with state and federal governments around the country. Yesterday, I noted that the State of Wyoming recently announced that it had moved 10,000 employees to Google's cloud-based office application platform, and that the federal General Services Administration had in December picked Google and a partner for a five-year, $6.7 million deal to move its employees to Google Apps as well.