In June 2008, Eric Schmidt mentioned that the intensity of rivalry between Google and Apple is heating up. Schmidt said that the rivalry might cause him to be dethroned. Around May 2009 Schmidt said that he was not planning to step down from Apple’s Board, but today he has stepped down.
The reason why Schmidt stepped down was because he said he had to recuse himself from big portions of Apple Board meetings to avoid conflicts of interest. “Therefore, we have mutually decided that now is the right time for Eric to resign his position on Apple’s Board,” stated Apple CEO Steve Jobs. Schmidt had joined the Apple Board of Directors in August 2006.
This resignation took place at a time when the Federal Trade Commission decided to investigate whether Google’s ties with Apple may discourage competition. Google is the default search engine and YouTube is a default application on the Apple iPhone.
Google has the following competing products with Apple. Google is developing a Chrome operating system which will end up competing with the Mac OS. Phones powered by the Google Android operating system compete with the iPhone. Google Android Marketplace competes with the iTunes App Store. The Google Chrome browser competes with Apple Safari and they both use Webkit. Apple iWork software competes with Google Docs.