Apple and Google unable to shake antitrust probe

 

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By Reuters

Posted on 4 Aug 2009 at 08:20

The US Federal Trade Commission will continue investigating the relationship between Apple and Google, despite Eric Schmidt's decision to quit Apple's board.

Eric Schmidt is Google's chief executive and he quit the Apple board citing the increasing overlap between the business of Google and Apple.

Schmidt's resignation would typically have closed the FTC investigation, but former Genentech CEO Arthur Levinson remains a director of both companies, prompting the watchdog to continue its investigation.

"We will continue to investigate remaining interlocking directorates between the companies," confirms Richard Feinstein, director of the FTC's bureau of competition.

"We commend them for recognising that sharing directors raises competitive issues, as Google and Apple increasingly compete with each other," he concludes.

Consumer groups have criticised Schmidt for taking so long to step down, and have called for Levinson to make a decision as quickly as possible.

"It took Eric Schmidt far too long to realise that the two roles are incompatible; that's not surprising considering the clubby atmosphere of Silicon Valley," says Consumer Watchdog advocate John Simpson.

"Nonetheless, we're glad Schmidt finally did the right thing; we call on Levinson to act responsibly and choose one company or the other."