GOOG Alphabet Inc

By Brent Kendall And Alistair Barr 

The Federal Trade Commission is looking at complaints that Google Inc. uses its Android operating system for smartphones to favor its search and services at the expense of rivals, according to people familiar with the matter.

The FTC's examination of Android-related issues is in its early stages, and it isn't clear the commission will allocate significant resources to mount a detailed probe.

The FTC hasn't contacted Google to ask questions related to a probe of Android, according to one person familiar with the matter.

FTC officials have held meetings recently with app developers and other providers of online services who have complained about Google's control over Android, one person familiar with the meetings said. Among the questions the FTC is exploring is whether Google uses Android to enhance its lead in online search, this person said.

Smartphone makers are free to not use Google's licensed Android operating system. But to get access to Google's Play app store and other services that enhance Android phones, they have to agree to put Google's search service prominently on the devices.

Hiroshi Lockheimer, head of Android, defended its arrangements with smartphone makers in a blog in April, after European officials launched their own investigation.

Mr. Lockheimer said Google's agreements with manufacturers ensured that Android phones would work well when people first bought them, by getting basic services like email and maps preinstalled and functioning harmoniously.

Mr. Lockheimer also said that even smartphone makers who use Google's licensed version of Android are allowed to preload, in prominent positions, apps and services from Google rivals like Facebook Inc. and Microsoft Corp.

But FairSearch, a coalition of large technology companies that includes Google rival Microsoft Corp., said Google has misused its position and welcomed the FTC's interest in Android.

"Google has used a range of anticompetitive tactics, carrying on a troubling pattern of conduct that has made it more difficult and expensive for fresh, innovative companies to reach the market," the group, which has long been critical of Google, said in a statement.

The FTC previously conducted a detailed investigation of whether Google abused its dominance in Internet search, but closed that probe in early 2013 without bringing a case.

In that inquiry, FTC staffers concluded Google had biased its search results to benefit its own services and hurt rivals. But in what they termed "a close call," the staffers recommended against a broad lawsuit, citing legal hurdles and Google's "strong procompetitive justifications" for its actions.

FTC competition officials in the previous investigation recommended challenging three Google practices, including its alleged "scraping" of content from rival websites. The commission agreed to close its investigation after Google agreed to make voluntary changes to those practices.

The companies that have complained to the FTC recently about Google include app developers and other providers of online services. They say they have been hampered in their attempts to get prominent positioning on Android phones or to win the status of a preinstalled, default app for their products.

The FTC declined to address the issue. "FTC investigations are nonpublic and we do not comment on an investigation or the existence of an investigation," said spokesman Justin Cole.

European antitrust officials are several months into a formal investigation of whether Google uses Android to stifle competition. The European Commission launched a full probe in April after several years of informal investigation.

Separately, the European Commission, the European Union's executive arm, also has formally charged Google with skewing its search results to favor its own shopping services.

Bloomberg reported earlier Friday that the FTC was examining Android-related issues.

Write to Brent Kendall at brent.kendall@wsj.com and Alistair Barr at alistair.barr@wsj.com

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(END) Dow Jones Newswires

September 25, 2015 15:21 ET (19:21 GMT)

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