The success of iPhone and Android have made Apple and Google major players in the smartphone world in just a few years, but that success could come at a cost: sources say the US Federal Trade Commission has begun an inquiry to decide whether the giants have violated antitrust laws.
According to the New York Times, the FTC is looking into whether the close ties between Apple and Google could reduce competition between the Silicon Valley titans, and has begun an investigation to determine whether Google CEO Eric Schmidt‘s position as both a director on Google and Apple’s board, and another director on both boards, Arthur Levinson, create a conflict of interest.
Although the FTC hasn’t stated what areas have got the government wringing its hands, the concern is likely to centre around the fact that both Apple and Google have entered the smartphone game relatively recently as rivals, with the iPhone and Android OS respectively. Common directors could make this seem like one entity tying up the entire market, especially since Google has worked closely with Apple on native iPhone Google apps.
The pair also offer rival internet browsers, Chrome and Safari, which could have made it on to the FTC’s radar too. Both companies are keeping silent on the report right now, but don’t be too surprised if Schmidt steps down from Apple’s board to avoid a clash.
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Out TBC | £TBC | Apple and Google (Via The New York Times)
