Gavel
The FTC believes that certain board appointments breach the Clayton Antitrust Act

FTC investigates Apple and Google ties

Companies face possible anti-trust action over common board members

Iain Thomson in San Francisco

The US Federal Trade Commission is carrying out an investigation into the boards of Apple and Google to see whether the two companies are breaking anti-trust rules.

The FTC is looking to determine whether certain board appointments at the two companies breach the Clayton Antitrust Act of 1914, which prohibits a person serving on the board of two rival companies when it would reduce competition.

Advertisement

Eric Schmidt, chief executive of Google, and Arthur Levinson, former chief executive of Genentech, are on the boards of both companies. Google and Apple compete in the mobile phone and browser sectors, and the FTC has concerns that this may contravene the legislation.

"Government actions under Section 8 [of the Clayton Antitrust Act] are rare, but they are brought under circumstances when the presence of a common director on competing boards is likely to be anticompetitive," said Andrew Gavil, an anti-trust expert and professor at the Howard University School of Law.

Apple has always claimed that Schmidt excuses himself from board meetings whenever Apple's phone business is discussed, but this may not be enough for the regulators.

However, a large fine is unlikely if the FTC rules against the companies on the matter, since the executives will simply stand down from the boards.

The move puts more pressure on Google, which was recently described as an effective monopoly by Christine Varney, the new assistant attorney general for anti-trust at the US Department of Justice.

Sanford Litvack, a partner at law firm Hogan & Hartson, who worked to block the Google/Yahoo deal, said: "I expect the administration to be aggressive, generally, on anti-trust enforcement."

"I do not expect Google to be singled out, or to receive a free pass because of Schmidt's relationship with the administration."

  • Have your say
  • Send to a friend
  • Print
  • Digg
  • Reddit
  • Share

Do you agree?

Further reading

Blogs

FTC plans regulations for online marketing

Word-of-mouth marketing is not exempt from the laws of truthful advertising

Padlock

Federal Trade Commission talks tough on DRM

Companies must disclose behaviour of copy-protection tools

FTC warns of online economic stimulus scams

Beware of web sites offering free money

US authorities crack down on scareware scam

Federal Trade Commission asks courts to shut down dodgy businesses

Related whitepapers

Related jobs

Most watched

iPhone

Video Review: iPhone 3GS

We put Apple's latest iPhone through its paces

V3.co.uk weekly debrief, 5 Feb 2010

This week we cover the continuing controversy surrounding the Orange T-Mobile deal

Analysis and Reports

Using managed services to protect mobile data users from the latest security threats

Counting the cost of data security: the benefits of secured mobile services

Shifting Disaster Recovery targets with SharePoint and SQL server configurations

Using a hostbased recovery system for mission-critical systems

Poll

Adobe Flash poll

Adobe Flash poll

Do you agree with Steve Jobs about Flash being buggy?

View poll results

Advertisement

White paper library

Keep up to date with the latest products, services and technologies from the world's leading IT companies; IThound.com brings you over 6,000 white papers, case studies and analyst reports.

Advertisement

Newsletter signup

Sign up for our range of FREE newsletters:

Existing User

Newsletter user login:

Enter email address to edit your newsletter preferences

Job of the week

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Hiring now on ComputingCareers:

Related IT jobs

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Advertisement

Spotlight

Neil Sanderson

Interview: Microsoft UK virtualisation chief Neil Sanderson

Sanderson outlines Microsoft's plans for Hyper-V, cloud computing and virtual...

Google

Google moves into social networking with Buzz

Facebook gets opposition in consumer and enterprise spheres

Nvidia

Nvidia pitches Optimus as prime notebook platform

New system pairs onboard and discrete chips

OpenDNSSEC

OpenDNSSEC service goes live

New security project encrypts Domain Name System traffic

Primary Navigation