Google's Eric Schmidt resigns from Apple board over 'conflict of interest'
By Joshua Topolsky 
posted August 3rd 2009 9:03AM
posted August 3rd 2009 9:03AM
The truth is, it's been a tangled web for some time as far as the relationship between Apple and Google goes. Sure, Schmidt sat on the board, the companies claim to be working on new projects, and Google Maps comes preloaded onto the iPhone, but over the past year, Google's increasing move into Apple's space, and Apple's increasing desire to control every inch of that space have not been good bedfellows. It's hard to imagine that Apple could maintain a completely healthy relationship with a direct competitor in both the phone and OS space for very long, and that's to say nothing of Cupertino's latest push into online document editing and management, which couldn't have seemed very awesome to Schmidt and company. Oh, and there's that matter of the antitrust case which is currently ongoing. Still, it's a bit sad to see this power couple going their separate ways, though it does give us some hope that Google will begin a full assault with Android in earnest, because only sweet stuff could come from those efforts. If you're interested, the full PR is after the break.
Update: The FTC says it's going to continue investigating the two companies for "remaining interlocking directorates," so Apple and Google aren't totally out of the woods, but we don't think anything else major is in store here.
Dr. Eric Schmidt Resigns from Apple's Board of Directors
CUPERTINO, California-August 3, 2009-Apple today announced that Dr. Eric Schmidt, chief executive officer of Google, is resigning from Apple's Board of Directors, a position he has held since August 2006.
"Eric has been an excellent Board member for Apple, investing his valuable time, talent, passion and wisdom to help make Apple successful," said Steve Jobs, Apple's CEO. "Unfortunately, as Google enters more of Apple's core businesses, with Android and now Chrome OS, Eric's effectiveness as an Apple Board member will be significantly diminished, since he will have to recuse himself from even larger portions of our meetings due to potential conflicts of interest. Therefore, we have mutually decided that now is the right time for Eric to resign his position on Apple's Board."
Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market with its revolutionary iPhone.
OMG, I for one am happy to know this - can't stand goog
Right on, free services are for loosers, I'm donating 1$ to Apple for every email I send. Grow up Google and get with the program.
Yeah! Down with excellent up-time, availability and speed!
@ Paul
so who to believe, you with one .png image labeled 'att-evil' or a respected iPhone developer who said Apple asked him to provide refunds to those who bought the app? And we're not criticizing Apple at every turn, I think the iPhone is a pretty good product. However their app store policies are kept a closely guarded secret if they even have any, because with some apps it seems unlikely that they have any rules whatsoever except 'It can't compete with us or AT&T'. And why are they even allowed to remove apps because they compete with Apple/AT&T? I would've hoped that they would have got slapped down for that the first time it happened. But competition is GOOD for consumers, and Apple/AT&T aren't providing a competitive platform by rejecting any app they suddenly decide they don't like.
Conflict of Interest = Google Chrome OS & Apple Tablet?
To say the FTC was investigating to see if there was reduced competition because the guy was there... Clearly the reduction in competition was Apple's goal, not Schmidt's.
Yeah, Google provides services because they care about you, not because they want to leverage their monopoly of the way people access information on the internet into advertising and click-through revenue.
tools.
Its not about free services, its about being Google's slave when they own every inch of the web. Not in a, I-live-in-the-woods-now-because-I-can't-handle-the-"man" kind of way... its just that when let them have everything, there's not going to be anything to encourage it to be better. They won't have to innovate as much because they know you'll be ready to just slop up their new whatever. That kind of complacency lives in a place called Redmond currently.
Furthermore, free = no accountability. Imagine a 'call' to customer service:
You -"My email is down and I lost $$$ blah blah gimme gimme"
Google- "It's a free service.... what do you want?"
click.
They are the new Wal-Mart.
I love how this is a top story now. Must of been an important guy. Google is going to rapidly move into other areas in the future not just apples small corner of the market.
Unlike a certain other "big company" I can always leave Google's free service whenever I want. I'm forced by my employer to use said other companies product. So the Google situation is not even close. I'm sorry, but that's just fud.
Now look for Apple to announce a new version of OSX codenamed Barbarossa.
never in my life have I seen someone who is hated by an entire population like Paul is....
and speaking of which....Apple told Verizon that if they got the iPhone they couldn't control what apps were accepted and what were rejected. Why didn't they do that to AT&T.....??
@ben - excellent quip; you're my new hero!
@Orrett Junior - way less than 10% of readers comment here, so we don't actually know how the other 90% feel. Even in that less-than-10% there are quite a few people (including me) who do not hate Paul. Some hate him. Many dislike him. Some are ambivalent. Some think he is good for fun and or laughs. I imagine that one or two might even love him. But hated by an entire population? No, not even close.
google is one of the best companies because of schmidt
Aww why'd you guys change the pic?
Damn, that IS breaking news... Wonder if this means more enhancements for Google software now...
how do you explain the rejection of Google Latitude?
oh yeah, apple thinks its users are too stupid to differentiate it from Maps
as an iphone user, i hope google starts playing hardball. apple needs someone to knock them down a peg. in the long run, itll be good for apple.
Good shout - I think in the end it will be good for both of them.
Does anyone have an idea of who has the most money? It appears that Google is now "running" the internet like back in the day when all internet traffic seemed to go through Cisco.
My 2 pennies ...
At least he made the decision to leave the evil company and stay with the good one.
Um..."the good one?"
I can't if you're being sarcastic....damn internets
(aren't they both inherently evil?Both "for" profit company's)
Sorry let me rephrase:
At least he made the decision to leave the more evil company.
+1
Any 'for profit' company is evil? Where do you live, North Korea? How about you continue to do your job, whatever it is you might do for a living, but we'll just stop you from getting paid and take any possibility of a raise in salary or a bonus away. Like that too?
:cough: fanboy :cough:
I guess apple deserves this hit in the face! Their policies, alliances made sure that Eric feel he was in hostile territory. Apple even made demands on android, google could heed to the demands, but then, can't apple just return that favor? Boo! Apple!
What are you dribbling about?
I really dont mean to be an !@#hole (and I'm no apple fanboy or whatsoever), but...
WTH are you talking about!!? Hostile territory?! Of course Apple would feel threatened by Google's announcements, they are both competing at some of the same markets! (phone OS, web browsers and even OS). And not to mention that Eric WAS in the Apple's board of directors, that is like having someone listening to every single of your ideas.
This was meant to happen the sooner or later. And Apple is certainly not the evil one this time.
Look around. Google is the one turning evil, nobody else.
Very true Munir, very true.
AT&Ts response to Google Voice rejection:
""AT&T does not manage or approve applications for the App Store"
Which is also very true. Keep it up Apple and soon you will be faced with more issues than you know what to do with.
he went down to the sub-basement by accident and saw the devil there.
No, Paul, I'm sure there is some sort of contract or something binding Apple to using Google for maps and for Google to provide the maps for said number of years. Plus if Apple were to block maps then they would be left with no Map application at all, therefore upsetting most of the iPhones users and once again killing their market share. Apple wants things just the way they are and they are making sure it stays that way.
It will be good for google.
@Paul: There are already numerous apps on the app store that allow you to send SMS withOUT AT&T gaining anything from them at all. Why would AT&T block Google Voice apps but not those if they were worries about the SMS? Ever hear of Skype? Guess what it allows you to do? That's right, make phone calls without AT&T gaining anything at all. That's been in the app store for a while now, and AT&T didn't block that one. Of course, these apps do nothing to threaten Apple, unlike google voice...
So is Schmidt doing his Ballmer impression in that photo or something?
@DBrim
I think that shot was taken during his "Thriller" dance.
Told.
the only reason people are worried over Google is largely due to their bank. Google's like the jack of all trades king of nothing company. Other than the search arena, which they are falling at as well ever since bing came into existence. So.. its obvious that no company is gonna let a competitor sit on its board. this was expected. And I highly doubt anything had to do with the rejection of apps.. you guys create so much drama..
Yeah, totally failing at search... and those Google ads are doing just terrible...
http://marketshare.hitslink.com/search-engine-market-share.aspx?qprid=5
http://findarticles.com/p/articles/mi_m0EIN/is_2009_Jan_20/ai_n31202990/
@Andir3.0 - both those links point to pre-bing traffic.
@Scooby
Find one post Bing, Google is still leading.
The first one is a link to a rolling chart site for search engine market share. It has August data!
... sorry, July data.
Here's an article giving direct comparisons of advertisement dollars:
http://news.cnet.com/8301-10805_3-10286240-75.html
Bing's the one that's falling.
Oh here is one ridiculous back and forth. Bing has been around since June of this year - who the hell thinks it would (or could) have destroyed Google already?
Apple just shot itself in the foot, not because it can't do well without it, but rather because they have nothing to gain at all from pissing them off.
Nice and professional. Given the directions that Google is taking these days this was the sensible decision but I expect he will be missed.
Maybe it was Jobs who asked Schmidt to resign. Maybe Apple has products in the pipeline that compete with stuff offered by Google and it would be dumb to have a competitor sit at the board meetings -- just a thought.
Or, maybe Schmidt pissed of Jobs on some petty thing.
I'd put money on it that Schmidt took the decision to resign - you cannot be overseeing a company that is in competition with your own.
And the final straw is when Apple fucks over your company (reject google voice) while you sit on the board.