Microsoft says EU may boost Google dominance - FT

* Microsoft says sanctions would hurt competition-FT

* Says PC firms may set search default in Google's favour

* Says rival browsers default to Google search engine

* Microsoft says brand rights could be infringed - FT

BRUSSELS, May 9 (Reuters) - Microsoft (MSFT.O: Quote, Profile, Research) says EU regulators will hand Google (GOOG.O: Quote, Profile, Research) more dominance of the Internet search business if they go ahead with planned regulations on Microsoft's Windows operating system, the Financial Times reported.

The FT said on Saturday that the move by Microsoft was contained in a confidential last-minute submission to the European Commission aimed at heading off antitrust action.

A Commission spokesman said in response to the report: "The Commission will examine all the arguments outlined by Microsoft in their reply to the statement of objections."

Microsoft officials could not immediately be reached for comment.