Apple and Google Ties Investigated
Posted on Tuesday, May 05 @ 03:32:12 CDT by Raulken |
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By MIGUEL HELFT and BRAD STONE SAN FRANCISCO - The Federal Trade Commission has begun an inquiry into whether the close ties among the boards of two of technology's most prominent companies, Apple and Google, amounts to a violation of antitrust laws, ...
Published: May 4, 2009 SAN FRANCISCO The Federal Trade Commission has begun an inquiry into whether the close ties among the boards of two of technology’s most prominent companies, Apple and Google, amounts to a violation of antitrust laws, according to several people briefed on the inquiry. Apple and Google share two directors, Eric E. Schmidt, the chief executive of Google, and Arthur Levinson, the former chief executive of Genentech. The Clayton Antitrust Act of 1914 prohibits a person’s presence on the board of two rival companies when it would reduce competition between them. Antitrust experts say the "interlocking directorates" provision, known as Section 8 of the act, is rarely enforced. Nevertheless, the agency has already notified Google and Apple of its interest in the matter, according to the people briefed on the inquiry, who agreed to speak on condition of anonymity because the inquiry was confidential. F.T.C. officials declined to comment. Spokespeople for Apple and Google also declined to comment. A spokesman for Genentech declined to make Mr. Levinson available for comment. The inquiry, which appears to be in its early stages, is the second antitrust examination involving Google to have surfaced in recent days. It suggests that despite the company’s closeness to the Obama administration, Google will not escape scrutiny from regulators. Mr. Schmidt... Click here to read the content (Source New York Times)
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