Apple Board To Meet, May Discuss Vacancy

With a Federal Trade Commission investigation into interlocking relationships between Apple and Google underway, Apple's board directors are said to be planning to meet Tuesday, when they could address the interlocking issue.

Earlier this month, chief executive officer Eric Schmidt of Google resigned from Apple's Board of Directors after Apple's CEO Steve Jobs noted that Google's Android mobile phone platform and its Chrome operating system increasingly could compete with Apple's core businesses. Schmidt had been a member of Apple's board since August of 2006.

The FTC has been examining the relationships between the two firms for months. At first Schmidt said he had no plans to resign his Apple director's position. As Android mobile phones gained increasing traction in the wireless market, however, and as Chrome OS began getting favorable reviews, Apple announced Schmidt's resignation.

In discussing Schmidt's departure, Jobs noted that the Google CEO's effectiveness as an Apple board member would increasingly be diminished because he would have to recuse himself from large portions of Apple board meetings.

Former Genentech CEO Arthur Levinson remains as a director of both firms. He doesn't have the detailed computer technology knowledge of Apple and Google that Schmidt has.

Interlocking directorships and relationships are a way of life among executives and officers of high tech and computer companies. For instance, former Vice President Al Gore, who has been a director of Apple since March of 2003, has also been a senior advisor at Google. Gore has also been a long time partner in Silicon Valley venture capital powerhouse Kleiner Perkins Caufield & Byers whose partner John Doerr is a member of the Google board.

There has been no evidence of wrongdoing due to any of the interconnecting relationships between Apple and Google.

Apple has not confirmed that a meeting will take place according to a Wall Street Journal report citing unnamed sources.

InformationWeek has published an in-depth report on Google's upcoming Chrome OS. Download the report here (registration required).