Google, led by Chief Executive Eric Schmidt, seems to be feeling the heat already from the impending update of Microsoft’s Internet Explorer, the Web browser which is used by 85% of the world’s PCs and which is set to be released with Windows Vista later this year as an updated version 7.

IE 7, it appears, could put a dent in Google’s lucrative grip on the search market thanks to a slim white search box located in the browser’s top right hand corner. Google’s concern is that the integrated search tool points users towards Microsoft’s MSN search engine, leaving them less likely to stumble across Google’s all-important ads.

The complaint has initially prompted some to chortle at what looks to be a case of the pot calling the kettle black–Google happens to have its own search tool integrated into Microsoft’s rival web browsers Firefox and Opera. But Google is deadly serious. A spokesman for the search giant, Steve Langdon, said that the company had approached the U.S. Department of Justice and European Commission about the issue, though no formal complaint had been filed.

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