Speaking at the Allen & Company media and technology conference in Sun Valley, Idaho, this week, Google CEO Eric Schmidt indicated that Google’s newly-announced Chrome OS means that he will have to speak with Apple about how his role on the Apple Board of Directors might change. Google’s Chrome OS will presumably be in direct competition with Apple’s own Mac OS X operating system products. The position not only creates a potential conflict of interest, but federal law prohibits individuals from being on the boards of multiple companies if it decreases competition between them.
Prior to Google announcement of Google Chrome OS, the Federal Trade Commission was already looking into possible antitrust concerns with Schmidt’s role on the Apple board. Schmidt says he recuses himself from the Apple boardroom when talk turns to the iPhone—Google competes directly with Apple on the mobile phone front with its Android mobile operating system.
Schmidt says he will discuss the issue with Apple, but for the time being there is no change with regard to his role on Apple’s board.
Schmidt is not alone in holding positions at both companies; former Genentech chairman Arthur Levinson is a corporate director for Google and Apple.
Allen & Company widely regarded as a leading investment firm in the entertainment and media markets.
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