FTC Probes Apple, Google Ties: Report

The Federal Trade Commission has begun investigating whether close ties between the boards of Apple(AAPL) and Google(GOOG) violate antitrust laws, the New York Times reports, citing several people briefed on the inquiry.

The companies share two directors, Eric Schmidt, CEO of Google, and Arthur Levinson, former CEO of Genentech. Antitrust laws prohibit a person's presence on the boards of two rivals when it would reduce competition between them, the Times notes.

Apple and Google increasingly compete in the cellphone and operating systems markets.

Antitrust experts say the provision against "interlocking directorates" is rarely enforced. Nevertheless, the agency has notified Google and Apple of its interest, according to the Times report.

Apple and Google, like many other technology companies, are allies as well as competitors. Google worked with Apple to design early versions of Gmail for Apple's iPhone. But the areas in which the companies are rivals have been increasing, the Times reports.

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