Report: FTC eyes Apple, Google board relationship
Correction, 5:03 p.m. PDT: This story had an incorrect title for Art Levinson. He is the former CEO of Genentech.
The Federal Trade Commission has decided to take a look at the cozy relationship between Google and Apple, according to a report.
The New York Times reported Monday that Google and Apple have been informed that the FTC would like to investigate whether the fact that Apple and Google have two members of their boards of directors in common--Google CEO Eric Schmidt and former Genentech CEO Art Levinson--amounts to a violation of antitrust law. The Times attributed the news to anonymous sources; all three parties--the FTC, Apple, and Google--declined to comment on the matter for the report.
Schmidt's involvement on Apple's board has long raised eyebrows, especially after Google revealed plans to release its own mobile operating system in Android. Schmidt has said he recuses himself from Apple board meetings where the iPhone is discussed, but under Section 8 of the Clayton Antitrust Act, companies are not supposed to have the same board members if "it would reduce competition between them," the Times reported.
Given that Android is such a small part of Google's business at this point in its history, the relationship between the two companies may not amount to a clear violation, according to legal experts interviewed by the Times. Still, neither company is likely to be thrilled about government scrutiny; Google is reportedly facing another investigation from the Department of Justice over Google Book Search.
Tom Krazit writes about the ever-expanding world of Internet search, including Google, Yahoo, online advertising, and portals, as well as the evolution of mobile computing. He has written about traditional PC companies, chip manufacturers, and mobile computers, spending the last three years covering Apple. E-mail Tom. 
But, OTOH, I'd rather have them have a gander now and make sure things stay on the straight.
I'm an Apple fanboy, as the folks here at CNET like to say, but Apple can win fairly.
Yep - I think Fester is behind this :)
Yes, that did cross my mind.
But outside that, they both have browsers too and I don't see anyone complaining that Chrome is stifling Safari's advancement or marketshare. There's a lot of things you could probably dig into if you wanted to look for it.
In the end, does it matter? Not really. Now when Google releases a phone under their own name and not just the OS on bad handsets, then there may be some substance to these questions.
And, of course, next comes the EU and the rest of the world whose motives are competitive in favor of their local companies. Hey, if the US is calling these firms bad guys in their own land, we should get our piece of the pie to prop up our economies.
I have a feeling that, just like Microsoft, the efforts will not be necessary as competition arrives, except in this case, it may be because the company execs decide it is better to relocate the whole firm to another land where the regulatory and taxation climate is more favorable to success. It isn't whole steel or auto plants that have to stay where they are planted -- In a global economy if a firm doesn't consider a move when threatened by their own government, competition in the foreign country will steal their customers and put them under anyway.
- by gopnick May 5, 2009 11:37 AM PDT
- I wouldn't blame Apple or Google if they moved their operators to a country that doesn't attack success.
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- by BogusBasin May 5, 2009 12:17 PM PDT
- Oh look! Another GOPer! Two in one day! Rare to find you people out in public. So near extinction, but still trying to remain relevant. How's that "rebranding" coming?
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(18 Comments)Amen