Montreal police say they've opened an internal investigation after a widely shared video showed a black driver being liberally doused in the face with pepper spray over alleged excessive honking.

Several bystanders, including one who was filming the arrest, were also sprayed during the same incident downtown by another police officer early Sunday morning as huge crowds took in F1-related festivities.

A short video of the incident was shared on Facebook and garnered a few hundred thousand views before being taken down.

The driver can be heard claiming racism and questioning why he's being arrested for honking his horn.

Ian Lafreniere, the head of communications for the Montreal police, says an investigation was ordered today to fully understand what happened.

Police say the driver was warned a few times just after midnight not to honk his horn in an attempt to rev up the crowds and then refused to provide his licence when asked.