Apple and Google Could Be In Breach Of Anti-Trust Laws

The New York Times has issued a report claiming that investigations by The Federal Trade Commission have begun in regards to market giants Apple Inc. and Google because they could be in violation of anti-trust laws in the United States.

The Clayton Anti-Trust Act of 1941 insists that an individual cannot sit on the boards of two rival firms if it results in competition between them declining. However, Dr. Eric Schmidt, Chairman and CEO of Google,  is also a director of Apple Inc, two companies which it could be suggested are rivals, due to their range of web browsers, software, applications and mobile phones.

Not only that, but in recent times, Apple and Google have worked together in developing services from Google so that they are easily and readily available on Apple’s iPhone. This would mean that both Google and Apple are certainly in breach of the act. Google, The Federal Trade Commission and Apple have all refused to make a comment in regards to the matter.

Law expert Andrew I. Gavil told The New York Times: “Government actions under Section 8 are rare, but they are brought under circumstances when the presence of a common director on competing boards is likely to be anticompetitive.” This is one of many recent problems that Google is facing. Days ago, some officials showed concern in Google’s power with online advertising, while others were concerned about the company digitising books. Last month, newspapers claimed Google should share the fortune they have created through online news links with them because it is taking away their custom.

What do you think about this? Are Google and Apple trying to be “anti competitive”? Should Dr. Schmidt and former Genentech official Arthur Levinson, who also sits on both boards, step down from one or the other? Should Goolge and Apple be authorised to continue with their partnerships and sharing of officials? Let us know, in a comment.