Board Ties at Apple and Google Are Scrutinised by FTC
Posted in: Government & Policy at 05/05/2009 23:29
The Federal Trade Commission has begun an inquiry into whether the close ties between the boards of two of technology's most prominent companies, Apple and Google, amount to a violation of antitrust laws, according to several people briefed on the inquiry.
Apple and Google share two directors, Eric E. Schmidt, chief executive of Google, and Arthur Levinson, former chief executive of Genentech. The Clayton Antitrust Act of 1914 prohibits a person's presence on the board of two rival companies when it would reduce competition between them. The two companies increasingly compete in the cellphone and operating systems markets.
US regulators question links between Google and Apple
The relationship between Apple and Google is under scrutiny again after the revelation that US regulators are investigating whether the close ties between the two companies violate competition law.
According to a report in the New York Times, the US Federal Trade Commission is looking into the fact that the Silicon Valley rivals share two directors - a situation that could contravene American rules.
Apple and Google 'probe launched' by FTC
The Federal Trade Commission is looking into the ties between the boards of Apple and Google, according to reports.
The New York Times said the inquiry involving Google and Apple centres on a possible breach of anti-trust laws.
Google boss Eric Schmidt and former Genentech boss Arthur Levinson sit on the boards of both companies.