FTC begins investigation of Apple and Google's relationship

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The Federal Trade Commission (or FTC, for those pro-acronym) has begun an investigation of the relationship between computer company Apple and search giant Google. The suspicion? Antitrust violations, according to the NY Times.

According to the Clayton Antitrust Act of 1914, no individual may be present on the board of two rival companies when it would potentially reduce competition between them. Currently, Eric Schmidt is the CEO of Google, as well as a director for Apple, and a man named Arthur Levinson (former chief executive of Genentech) is a director on both companies. As you may be aware, Apple is currently developing and maintaining its iPhone smartphone with full force, and Google had its Android platform to essentially rival that. That's where the problem with the Clayton Antitrust Act comes in.

The FTC has notified Apple and Google of their interest in these matters, though apparently spokespeople for both Apple and Google declined to comment. This will be interesting for the future on both Apple and Google's mobile device operating systems; Google's products are currently integrated right into the iPhone OS itself, with the Maps application, as well as there being a number of applications developed by Google on Apple's App Store. What do you think about all this, Neowin?

#1 mrmckeb on 05 May 2009 - 06:52

For a long time I've thought the relationship these two companies have is suss. It should be ended. Google and Apple can fend for themselves against their competitors, they don't need to team up.

#2 +Frazell Thomas on 05 May 2009 - 06:54

Glad to see the FTC is investigating. Without proper policing businesses run amuck.

(1 reply) #3 excalpius on 05 May 2009 - 07:32

Maybe the FTC should really be spending their time investigating the five major media companies, which have been engaged in racketeering, price-fixing, and anti-competitive behavior for DECADES now...

#3.1 -Bryce- on 05 May 2009 - 11:45

excalpius said,

thank you! this has a hidden agenda to steer the public eye away from the government and media.

#4 lickerish on 05 May 2009 - 10:56

To be honest, dont you think that either way with or without antitrust violations that they would have teamed up anyway?

(1 reply) #5 +Chicane-UK on 05 May 2009 - 12:20

I'm slightly confused. I thought the only time antitrust stuff like this could come into play was when the manufacturers were engaged in monopolistic tactics, and there was not any viable competition. The iPhone and the Android phones account for a percentage of the mobile market, but they are by far and away not the only choices in a very saturated market...

Back when Microsoft got reamed for anti-competetive practices, it made sense - Linux wasn't anywhere near mature enough at the time to be a major player in the OS market, and Apple were on the verge of collapse - Windows really was the only choice for most people. How does this situation compare?

#5.1 GreyWolfSC on 05 May 2009 - 13:36

Collusion is covered by antitrust laws as well, not just monopolies.

(3 replies) #6 MrA on 05 May 2009 - 12:43

According to the Clayton Antitrust Act of 1914, no individual may be present on the board of two rival companies when it would potentially reduce competition between them.

I dunno, there seems to be a fair bit of competition between the two companies such as with Picasa vs iPhoto, Android vs iPhone, Chrome vs Safari, and Gmail/Calendar/Contacts/etc vs MobileMe. So where is there reduced competition?

#6.1 M_Lyons10 on 05 May 2009 - 13:42

I guess that's where the investigation comes in. I dunno, it should be rather interesting. I didn't know about any of this. It does seem suspect...

#6.2 chisss on 05 May 2009 - 16:18

well... if you recall the MS antitrust with IE and WMP where they were trying to prohibit MS to bundle all of that into the OS yet Apple bundles all that when you buy their computers...

I am not sure tho if those programs are available for OSX... anyway who cares... we'll see the outcome

#6.3 duneworld on 05 May 2009 - 17:04

Maybe you should read the article again, because it states that the FTC is concerned about there being common board members between the two companies. I suspect that someone who is on the board of more than one company would be able to influence both companies to maximise individual profit.

#7 C_Guy on 05 May 2009 - 14:43

It's about time. Next they should investigate Apple for bundling Safari with OS X. If you're going to waste Microsoft's time and money on that non-issue, do it to Apple as well.

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