The U.S. Federal Trade Commission has opened an inquiry into whether the close ties within the boards of two of technology’s most prominent companies, Apple and Google, amount to a violation of antitrust laws, according to several folks briefed on the inquiry.

Apple and Google share two directors: Eric E. Schmidt, chief executive of Google, and Arthur D. Levinson, former chief executive of Genentech. The Clayton Antitrust Act of 1914 prohibits a person’s presence on the board of rival companies when it would reduce competition amidst them. The two companies increasingly compete in the cell phone and operating systems markets.

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, said the society briefed on the inquiry, who agreed to speak on condition of anonymity considering the observation was confidential.

Officials at the commission declined to comment. Spokespeople for Apple and Google plus declined to comment. A spokesman for Genentech declined to assemble 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.

“I expect the administration to be aggressive, generally, on antitrust enforcement,” said Sanford M. Litvack, a partner at Hogan & Hartson.

Last year, while working for the Justice station, Mr. Litvack built a case to block a prominent advertising partnership amidst Google and Yahoo.

Antitrust experts said that investigations of interlocking directorates rarely lead to major confrontations amoung companies and the government. Executives typically choose to resign from the board of a competitor whether it poses a problem rather than face a lengthy research or a bruising legal fight.

Like many companies in the industry, Google and Apple are both allies and competitors. Google,…

[Source] dhiram