Google's use of its search engine to support its expansion into new internet services gives it an unfair advantage and puts it on a collision course with antitrust regulators, according to a prominent US media mogul.

Barry Diller, chairman of online travel company Expedia and InterActiveCorp, which has amassed one of the largest collections of internet properties, criticised Google for giving prominence in results to its in-house services. That had enabled it to “arbitrarily get in front of” other internet companies that rely on Google for traffic. “I think it is disturbing that Google is moving into serving individual spaces, rather than being search neutral,” Mr Dillersaid. “It is a dangerous step because it is inevitably going to cause problems with their customers and regulatory authorities.”

The comments come less than two weeks after Google unsettled the online travel industry with an agreement to pay $700m for ITA Software, whose technology is used to find airline flights and tickets prices. By enabling Google to display suggested flights in reply to searches, the deal would give it a strong foothold in the largest ecommerce market and potentially put it in competition with companies like Expedia.