With Google’s Monday statement pertaining to the resignation of the ex-Genentech CEO Arthur Levinson from the Internet search giant’s board, yet another link between Google and Apple has apparently been severed.
Levinson’s resignation comes within months of Google CEO Eric E. Schmidt’s August resignation from the Apple board.
At one time, both Levinson and Schmidt were directors of both Google and Apple, despite the fact that Clayton Antitrust Act of 1914 disallows such board overlaps in case they thwart competition between two rival companies.
The recent resignation of Levinson and the earlier resignation of Schmidt are most likely an outcome of the anti-trust probe initiated by the Federal Trade Commission (FTC) into the close ties between the boards of Google and Apple.
In fact, the FTC chairman Jon Leibowitz has hinted that the commission would likely have taken the legal route to force the companies to sever their board ties, since the issue relates to consumer interests as well as the government’s desire to see healthy competition among rivals.
About Levinson’s resignation, Leibowitz said: “Google, Apple and Mr. Levinson should be commended for recognizing that overlapping board members between competing companies raise serious antitrust issues, and for their willingness to resolve our concerns without the need for litigation. Beyond this matter, we will continue to monitor companies that share board members and take enforcement actions where appropriate.”
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