UPDATE 2-U.S. begins antitrust review of Data Domain bids

* U.S. govt starts antitrust review of Data Domain bids

* Federal Trade Commission handling the review

* Data Domain board formally rejects hostile bid from EMC

* Board advises shareholders to support NetApp deal

* Data Domain shares fall 1.9 pct (Adds details on U.S. antitrust review, bylines)

By Jim Finkle and Anupreeta Das

BOSTON/NEW YORK, June 15 (Reuters) - The U.S. government has begun an antitrust review of competing bids for Data Domain Inc (DDUP.O), an inquiry that could decide who succeeds in buying the specialty storage equipment maker.

The U.S. Federal Trade Commission is investigating dueling $30-per-share bids from EMC Corp (EMC.N), the world's biggest maker of data storage equipment, and smaller rival NetApp Inc (NTAP.O), officials at the two companies said on Monday.

EMC is trying to snatch Data Domain away from NetApp, which has already signed an agreement to buy the company for $1.9 billion. Both suitors are lobbying shareholders, and analysts expect the price to go higher.