by SEO Consultant
J. Cave
J. Cave
The close relationship between Google and Apple is being examined by regulators in the US once again. Google and Apple have long enjoyed a close relationship, one that has gone as far as the two companies sharing board members Eric Schmidt and Arthur Levinson. Regulators in the U.S. are concerned that the intimate ties between the two Californian companies may violate competition law. While U.S. law does not state that it is illegal for two companies to share board members, questions are asked if the two companies operate in similar markets.
The central concern for regulators is whether or not a relationship between Google and Apple could affect the markets they both operate in. Both of the computer giants have huge investments within the mobile phone markets (iPhone and Android) as well as the browser markets (Safari and Chrome).
Other major areas the two companies compete in are video services (Youtube and iTunes), photo services (Picassa and iPhoto), and document software (iWork and Google Docs).
According to the Clayton Anti-Trust Law of 1941, one on which most experts are focussing their attention on in this case - two competing companies are only allowed to share board members if they make less than $20 million each year. Obviously, this doesn't apply to Google and Apple.
Over the past few months, the relationship between the two companies has been very beneficial to each, Google providing the products (Gmail and Google Maps) and Apple the market (iPhone customers), as the two companies worked together to adapt core Google products to the iPhone.
When you consider that more than 3.7 million iPhones have been sold in the past three months, it becomes obvious that this is a very lucrative relationship for both companies. Naturally a relationship likes this will raise a few eyebrows with the Department of Justice who have already begun an investigation into Google's relationship with authors and publishers.
No official statement has been given by the Department of Justice but it is likely that this investigation will be just one of many as the two companies grow their multi-billion dollar empires.
