Despite Google’s Schmidt resignation from Apple board, FTC investigation continues; Gore next to go?

“The Federal Trade Commission commends Apple and Eric Schmidt’s decision on their parting of the ways this morning, but it appears that the federal investigation into the so-called “interlocking directorates” will continue, and that cannot be good news for either company,” jim Goldman reports or CNBC. “In a statement released this afternoon, FTC Bureau of Competition Director Richard Feinstein says:”

On August 3, 2009, Apple announced that Eric E. Schmidt, Chief Executive Officer of Google, was stepping down from its board. “We have been investigating the Google/Apple interlocking directorates issue for some time and commend them for recognizing that sharing directors raises competitive issues, as Google and Apple increasingly compete with each other,” said Bureau of Competition Director Richard Feinstein. “We will continue to investigate remaining interlocking directorates between the companies.”

The FTC’s Bureau of Competition works with the Bureau of Economics to investigate alleged anticompetitive business practices and, when appropriate, recommends that the Commission take law enforcement action.

Goldman writes, “That’s a big time bummer for Apple and Google, both of which are facing various levels of federal inquiry. Neither needs to be attracting more government attention, and the statement by the FTC just goes to show how late Apple and Google were in recognizing the conflicts of interest Schmidt’s ongoing role on Apple’s board posed… Former Genentech CEO Arthur Levinson still serves on both boards. I don’t see that continuing very much longer and it sure will be interesting – and send a very intriguing message – when he ultimately chooses one board over another. Same goes with Al Gore.”

Read more in the full article here.

56 Comments

  1. “I actually think Google has achieved their goal [seeking not to get locked out of the mobile phone world] without Android, and I now think Android hurts them more than it helps them. It’s just going to divide them and people who want to be their partners.”

    – Steve Jobs, January 2008

  2. There certainly seems to be a lot of interest in making sure Apple’s board is “right.” But some might suggest that, with the current board, Apple has been doing stunningly well. Sounds like just the right time to change things around so that Apple can get on a NEW “right track.”

    Then again, maybe people should just stay out of it and let Apple continue to do what it’s doing. Is there someone who has a problem with AAPL’s recent performance or the quality of their products?

    So what’s the REAL agenda here in for all the calls to change the board?

    Those must be non-shareholders calling for change…

  3. What “remaining interlocking directorates” between Apple and Google is the FTC talking about? Does Apple have one of its own on Google’s board?

    And what’s the problem with Genentech’s Levinson? It’s not like they’re in the same business. Genentech probably buys a lot of Xserves, but there’s nothing wrong with that. Or is it that the government doesn’t like having the heads of too many successful companies in the same room?

  4. They use a loose definition of compete. How do Apple and Google compete?

    In the only area Google makes money, search, Apple does not compete. Google does not sell a mobile OS, they give it away to 3rd parties. Apple does not sell a mobile OS, and they do not give it away to 3rd parties. Neither Apple nor Google sell their browsers. Google does not compete with Apple in hardware. Google does not compete with iTunes. Where exactly are they competing?

  5. Dustbuster,

    Yeah, I’m in the KKK because I believe that what people earn is theirs, not to be confiscated and wasted on bloated, inefficient government programs that purport to fix problems, but actually create more than they solve.

    Plus, I doubt the Klan would take me as I’m black. That’s “African American” for all of you brainwashed knee-jerk liberals.

  6. Macintosh Sauce,

    Next to Sarah Palin, I’m the Libs’ worst nightmare: A black man capable of independent thought.

    I can see that voting in lock-step for Democrats over the last 60 years has only gotten us blacks more and more enslaved to the government.

    We traded one form of slavery for another.

    Live free or die, brotha. Live free or die.

    MDN MW: “truth.” No lie.

  7. People were calling Obama a failure on his first day in office. Conservatives have no identity outside of hating people who try to fix what they have done to America in the last eight years.

  8. Because many here are apparently Reading Comprehension Challenged – will post these same comments at all the Schmidt Stories, in hopes the repetition might possibly enhance your ability to understand.

    ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

    On Schmidt …

    Everyone’s just pokin’ and hopin’ – Some are more hope than poke, and few give any detailed specifics.

    Since a picture is worth 1,000 words – looks like Joy of Tech comes closest with their “explanations”

    Least on the Google Voice, but probably applies to the story in general

    http://www.geekculture.com/joyoftech/index.html

    Now, let’s talk about Gore, but with this one rule …

    In order to say anything about Gore you must be a Vet from either WW2, Korea, Nam, to Gulf War 1 or 2

    And you must have been “In Country” even if it was “in the rear with the gear” writing for Stars and Stripes

    Or you must have at least been subject to The Draft – the Real One that could have put you in The Shit

    If you’re a Senator’s Son whose Daddy got you out of The Shit via National Guard

    (and there are still lingering questions if you ever showed up for that ? )

    Well, just declare “Mission Accomplished” then go work on some nucular initiatives

    We are Americans and we will always place Great Value on Service to Community and Nation

    Talk is cheap, you must do something – and not something for sake of money, ego, or to avoid any hassles

    It must be selfless, with charity and intended thoughts of helping others, not for yourself

    And like the Boy Scout helping Lil ol’ Lady across street – if anyone sees you do it, it don’t count

    So, if you qualify under this “rule” ?

    Then chime in with some smart ass remarks

    And we’ll go from there

    ” width=”19″ height=”19″ alt=”cool smirk” style=”border:0;” />

    BC

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