Apple on Monday put ended speculation about whether Google CEO Eric Schmidt would remain on its board of directors. The Mac maker announced Schmidt has resigned from the position he has held since August 2006.
The decision to part ways was mutual, as Apple and Google begin to compete head-to-head on several fronts. The companies may have been looking to avoid a potential confrontation with the Federal Trade Commission. The FTC has been exploring Schmidt’s role on the Apple board to determine whether there are any anticompetitive implications.
“I have very much enjoyed my time on the Apple board,” Schmidt said. “It’s a fantastic company. But as Apple explained today, we’ve agreed it makes sense for me to step down now.”
Conflicts of Interest
In one of his most strategically important announcements since his return, Apple CEO Steve Jobs called Schmidt an “excellent board member for Apple” who invested his “valuable time, talent, passion and wisdom” to help make the company a success.
“Unfortunately, as Google enters more of Apple’s core businesses, with Android and now Chrome OS, Eric’s effectiveness as an Apple board member will be significantly diminished, since he will have to recuse himself from even larger portions of our meetings due to potential conflicts of interest,” Jobs said. “Therefore, we have mutually decided that now is the right time for Eric to resign his position on Apple’s board.”
Although Google’s aim appears to be more directly at Microsoft with its Android mobile operating system, Chrome browser, Chrome operating system, and other initiatives, Google is encroaching on Apple’s territory with its products.
Google’s Evolution
“Back in 2006, Google was essentially a service that was offered on Apple products and in many cases in prominent positions. You saw Google Search on Safari and Google Maps on the iPhone,” said Michael Gartenberg, a vice president at Interpret. “The…