The European Commission's new antitrust czar Joaquin Almunia indicated Wednesday that Google may face a full-blown investigation into charges brought a few months ago by Microsoft, British price comparer Foundem and French legal search engine ejustice.fr alleging that Google had demoted rivals in its search rankings.

He said at a conference hosted by University College London that "The work is at an early stage, but given the importance of search to a competitive online marketplace, I am looking at the allegations very carefully."

The Financial Times says the regulator is still collecting data and is in touch with Google, which maintains that results are controlled by algorithms. The Wall Street Journal says the EC isn't sure Google is truly dominant and that the answer may rest with the barrier to entry, how easy it is for consumers to switch and the company's power in adjacent markets.

Google is already braced for regulators combing through its proposed acquisition of ITA, the Boston flight information ISV, which is supposed to give it a major position in travel search.