The regulators at the FTC [Federal Trade Commission] are looking at the Board of Directors for both Apple and Google. It appears there could be a violation of the Clayton Antitrust Act of 1914 which prohibits a member of a competing company being on the board of a rival. The boards of both companies appear to have a member of their rivals in place as board members. Both companies have been notified by the FTC of the investigation.

According to the N.Y. Times article it states that:

Antitrust experts say the provision against “interlocking directorates,” 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.

If this in fact true,  both companies need to correct the situation. Also it is good to see that the Obama administration is letting the investigation proceed.

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