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.
windows mobile 7 coming to destroy the competition, it doesnt matter about all this bickering between apple and google
So, which year should we be pencilling that one into our diaries for? Somehow, I don't think anyone is exactly crapping their pants yet.
Good. We agree that it's Apple's fault then.
As for hating you, you give me far too much amusement for that although perhaps not as much amusement as the people who do take you seriously do.
Now maybe Android can support Multitouch since there is no longer a conflict of interest with Apple....Not that I ever believed that.
The reason why CEOs become board members of other companies is to *create* synergies. Basically, allow company to share ideas and monopolize horizontally. It's 'legal espionage', and somewhat a different interpretation of the 'invisible hand'.
At this point, Apple is the loser, cause Google knows content is king, and they have the game-chaging ideas and services (even with Hardware). Apple, as usual likely, ripped off ideas from Google (through these board partnerships) and due to Apple's maturity as a company and product design & marketing might, they had the advantage to throw lots of $$$ at a problem (i.e. R&D) and execute faster than Google. Really, that was 2005. It's now 2009.
Google's at a mature state now (as seen with Search, Android and gMaps) and can forgo this relationship. Apple on the other hand loses the idea engine for creating great services: as "the service" is what makes Apple's ecosystem work.
Sorry, are you suggesting that Eric Schmidt willingly gave trade secrets to Apple? Only that's what it sounds like and the suggestion is absolutely ludicrous.
More like Forced and Blackmailed by APple to do so. They are the most shady company in all the world, the history of the world.
Hehe - Google should just block access to g-mail and g-maps if it detects that it is accessed from an iPhone. Just like Apple tried to do with iTunes.
Even if just for a week. I don't suppose Apple will like swallowing it's own bitter pill.
I know Google would never do that - and ultimately I'm glad they don't.
Apple will be fucked if they did that. BTW, I have been noticing an almost apathy from Google on improving the GMaps iPhone application. Results are worse in quality than using their website even using mobile safari. I hope they let Gmaps on iPhone go to hell. I say this as an iPhone 3GS owner, but one thing I cannot tolerate is hypocrisy. Apple is the biggest hypocrite in using Gmaps as the shipping mapping application and then refusing other Google apps. Fuck Apple.
This comment probably wont be read, due to being buried by Paul Chapel Comments/Replies, but am I the only one who does not sense animosity between the two? Just because he resigned doesn't mean that Apple and Google are at war and pissed at each other or whatever. It seems to be in the best interest of each company to part at this time. They can still work together but do not necessarily need to be on each others boards.
True indeed. I am absolutely 100% sure that this decision has nothing to do with Google Voice application debacle and that the 2 companies will continue to do business with each other as normal. This is a resignation due to conflicts of interest, not some sort of huffy.
Nope, not at all. There is definitely Something Bigger Brewing here.
Don't be so Naive.
Sure. Next they can also direct a shotgun at their feet and pull the trigger...
Déjà vu...
Hey Paul,
Not to extend this thread any further, but Apple develops the iPhone Maps app, not Google.
If Apple wanted Google Voice to stay they could have done it, despite what AT&T want.
"Either drop Google Voice or you can take our most successful phone elsewhere!"
Thank you. Three pages later, someone finally said it.
Never mind the contracts and business agreements between them. Their lawyers may disagree with you both.
Yes because suing Apple would be a fantastic long term decision by AT&T.
That's nice
Maybe the FCC will get down to the bottom of this.
http://www.pcworld.com/businesscenter/blogs/bizfeed/169497/apple_draws_fcc_inquiry_with_shady_iphone_app_rejections.html?tk=rss_news
Kelmon, it would be an Acceptable Loss to take down those Fascist losers. Battle Scars Baby!!! ; D
I think this was finally a wise decision. Apple you go to your corner, and Google you go to your corner. The real winner IMO is going to be Android OS. As now efforts are going to be concentrated in that direction. And Apple is free to do what they do without spilling any beans with the possible upcoming tablet. So I guess that's a win for Apple.
On the GV app topic, I truelly believe the majority of the blame points to Apple, although AT&T had a hand in it. Reason being is the iPhone is sold worldwide to multiple carriers that would miss out on this app, not solely AT&T users. Did all other partners and carriers complain about this app as well? Apple makes the ultimate decision to kill the app, although I'm sure with a little coaching from their largest carrier.
Who knows maybe Apple has their own app in the works especially given there could be a tablet on the way and Apples recently touted but 3yrs overdue voice features on the iPhone 3GS.
Google Voice is US exclusive so it will not affect other carriers.
Hopefully this will allow users to set other search engines in Safari bar, like Yah...wait, they signed an agreement with who? Bing will underlying all Yahoo searches...crud, so maybe its time to take a peek at Ask's logorythm
I'm so happy.
I use an iPhone 3GS since it actually is the best interface and best Exchange support out there.
However, I am glad that this has happened. Apple ships the iPhone with Gmaps from Google. That is their default shipping application for mapping. Without it, they would have nothing for mapping.
Now they want to pick and choose what Google can put on their devices. I say let them go fuck themselves. Take away Gmaps on the iPhone and let Apple scramble to make their own mapping application. I hope Google refuses to make any apps for the iPhone and just focuses on Android while making apps for S60, WinMo and BB so as to increase interoperability of their products and services while keeping Apple out.
Let Apple have its walled garden without decent mapping or decent future technologies. Sure Apple can make a mean interface, but they are NOWHERE near Google in offering useful products and services. Let them go wither away and die along with their exclusionary attitude to Google Voice and other apps.
I want to see Apple come back begging for GMaps and also Google Voice being a part of that package. Using GMaps on the iPhone it has also become clear that they aren't really improving it or making the search results even on par with what their website can provide. They should let Apple go fuck themselves while they bring out the real technology on Android and others.
Fuck Apple - current iPhone 3GS user.
Does this mean we get multi-touch now?
Here's an interesting little tidbit. Apparently shares of both Google and Apple went up after this news came out. (Sources: http://www.marketnewsvideo.com/?id=200908AppleGoogle080309&mv=1 & http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chdet=1249329600000&chddm=1173&chls=IntervalBasedLine&q=NASDAQ:GOOG&ntsp=0 & http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chdet=1249329600000&chddm=1173&chls=IntervalBasedLine&q=NASDAQ:AAPL&ntsp=0 )
"both the phone and OS space " I never figured Chrome OS to be ANY threat to Apple, the target market for Chrome OS and Mac OS X are on a completely different level. One for laptops, other for netbooks, and misc. devices. They are shooting for a different audience. Nice endgadget....
When Google announced the OS they said it was targetted "initially for netbooks" not that it would never be on laptops/desktops. That also doesn't go to say the OS won't be ready for those markets they are just taking it one step at a time.
If anybody is in a position to know if Chrome OS is a conflict of interest with OSX it is Eric Schmidt so I'm going to trust his judgement.
I knew it was just a matter of time.
http://www.chrome-os-blog.com/eric-schmidt-has-left-the-apple-building-238/
I was reading the earlier comments, and I have to agree with Paul that most likely it was AT&T who forced Apple to reject the GV App. Apple really doesn't gain anything from rejecting apps that increase their device's functionality, such as Slingbox or JV.
Also, I'd like to express my annoyance with people insulting Paul. I've dealt with my fair share of trolls before, but seriously, are you so lacking in self-esteem you need to continuously insult his dignity by making sweeping statements about how he is "the most hated person in the world", or how he's "just wrong"?
Honestly, you're only demonstrating your own cowardice and troll-worthy nature by reciprocating his arguments with such baseless and cruel ad hominems.
Bye, bye Apple.
It's about freakin time. Now Google won't hold back.
Obviously it is Apple's fault, no denying it!
@ Paul I think att is not to blame. Its all apples fault.
BTW im a humongous d-bag
Why do people defend Apple so much? It's their store and they are not allowing a superb app... how can AT&T be blamed?
Think maybe the FCC would have had a heads up on these 2 monopolies and their work together. What's that? Your application is incredible but will make me lose money? No thanks! Who will have the last say? Having fun with the news: http://www.youtube.com/watch?v=g85_YpEdgEE