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US Federal Trade Commission tells Google: act now or face lawsuit

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Google has been talking to the FTC for two weeks. Photo: EPA

Google is being pressed by US Federal Trade Commission chairman Jonathan Leibowitz to offer to resolve the agency's antitrust probe in the next few days or face a lawsuit.

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Google had been in discussions with the agency for about two weeks and had not put any remedy proposals on the table, said two sources close to the case.

For almost 20 months, the FTC had been probing whether Google was abusing its dominance of the internet, and it was prepared to sue if the operator of the world's largest search engine failed to make an acceptable proposal, the sources said.

The FTC had told Google it would not accept a resolution short of a consent decree and was prepared to take action in the next week or two, one said.

"We continue to work co-operatively with the Federal Trade Commission and are happy to answer any questions they may have," Adam Kovacevich, a spokesman for Google, said yesterday. Peter Kaplan of the FTC declined to comment.

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Specifics about what elements an FTC complaint would contain and whether it would include provisions about Google's practices on search rankings were still under discussion within the agency, a third person familiar with the matter said.

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