p2pnet news view | Products:- An inquiry into whether or not allegedly too-close ties between Apple and Google amount to a violation of antitrust laws has been launched by the Federal Trade Commission.

“Antitrust experts say the provision against ‘interlocking directorates,’ known as Section 8 of the act, is rarely enforced,” says the New York Times.

But the FTC has, “already notified Google and Apple of its interest in the matter, according to the people briefed on the inquiry, who agreed to speak on condition of anonymity because the inquiry was confidential,” says the story,  noting Apple and Google share two directors, Google boss Eric E. Schmidt, and Arthur Levinson, former Genentech CEO.

“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,” it says, going on, “The two companies increasingly compete in the cellphone and operating systems markets.”

The inquiry, “is the second antitrust examination involving Google to have surfaced in recent days,” says the NYT. “It suggests that despite the company’s closeness to the Obama administration, Google will not escape scrutiny from regulators.”

Schmidt, “joined Apple’s board in 2006, about five months before it unveiled the iPhone,” it states, adding:

“Google announced its plans for Android, its mobile phone operating system, nearly a year later. Since then, analysts have speculated that Mr. Schmidt’s position on Apple’s board could become untenable. Google has said he recuses himself when Apple’s board discusses mobile phones.”

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New York Times – Board Ties at Apple and Google Are Scrutinized, May 4, 2009