Report: FTC Scrutinizing Google, Apple Board Ties5 May, 2009 By: Erik Gruenwedel
The federal government is reportedly investigating whether Apple and Google, whose boards share directors, have violated antitrust laws.
The New York Times said the two technology behemoths’ boards share Eric Schmidt, CEO of Google, and Arthur Levinson, former CEO of biotech firm Genentech.
The Clayton Antitrust Act of 1914 prohibits a member’s presence on the board of two rival companies if it could reduce competition between them.
Apple and Google are fast becoming dominant players in the mobile phone business, among other markets.
A provision in the act that prohibits the appearance of collusion between rival board members, known as “interlocking directorates,” is rarely enforced, according to The Times.