The U.S. Federal Trade Commission has notified Apple Inc. (AAPL) and Google Inc. (GOOG) that it is beginning an inquiry into whether ties between the boards of the two companies is a violation of antitrust laws, the New York Times reported Monday, citing several people briefed on the inquiry.
Eric E. Schmidt, the chief executive of Google, and Arthur Levinson, the former chief executive of Genentech, are directors of both companies, the newspaper reported on its Web site.
The Clayton Antitrust Act of 1914 prohibits a person from being on the board of two rival companies if it would reduce competition, although antitrust experts say the provision is rarely enforced, the Web site said.
Officials at the commission declined to comment, as did spokespeople for Apple and Google, the Times said on its Web site.
Full story: http://www.nytimes.com/2009/05/05/technology/companies/05apple.html?_r=2&ref=business
Eric E. Schmidt, the chief executive of Google, and Arthur Levinson, the former chief executive of Genentech, are directors of both companies, the newspaper reported on its Web site.
The Clayton Antitrust Act of 1914 prohibits a person from being on the board of two rival companies if it would reduce competition, although antitrust experts say the provision is rarely enforced, the Web site said.
Officials at the commission declined to comment, as did spokespeople for Apple and Google, the Times said on its Web site.
Full story: http://www.nytimes.com/2009/05/05/technology/companies/05apple.html?_r=2&ref=business