Chrome buildup may put GOOGLE & APPLE relations under spotlight

San Francisco
The Economic Times (Delhi edition)
As Google prepares to unveil its own operating system, based on its Chrome browser, all eyes are on its intensifying competition with the software giant, Microsoft.

But Google’s announcement on Tuesday also complicates its relationship with Apple, a longtime ally. Regulators at the Federal Trade Commission have been investigating whether Google and Apple are violating anti-trust laws by sharing two board members: Eric E Schmidt, chief executive of Google, and Arthur D Levinson, chief executive of Genentech. Under Section 8 of the Clayton Antitrust Act, companies with “interlocking directorates” face limits on sharing information through common board members.

The investigation has been going on for several months, said people with knowledge of the situation, who requested anonymity because they were discussing a confidential inquiry.

Google’s new operating system, which the Internet search giant said could ship in the low-cost computers called netbooks by next year, is likely to create more questions for regulators looking into Google’s relationship with Apple.

“The circle of sensitive competitive information between Apple and Google seems to be widening,” said Andrew I Gavil, an antitrust specialist and a professor at Howard University School of Law. “The more you have potential overlap in products and marketing strategy, the more the FTC might get concerned about a violation of Section 8.”

Steve Dowling, a spokesman for Apple, declined to comment on the matter.