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More than a year or so ago many people might be hard pressed to see too many areas in which Apple and Google compete.  Sure, they both had photo editing and hosting services in Picasa and iPhoto/MobileMe, but that’s about it.  Now their increasing number of competing markets is getting the Federal Trade Commission involved.

The FTC is investigating both companies under the Clayton Antitrust Act of 1914, part of which prevents the boards of directors for two competing companies to have crossover members.  Both Apple and Google share Google CEO Eric Schmidt, and former Genentech CEO Arthur Levinston on their boards.  As the two now compete in photo editing/hosting, browsers, mobile phones, and operating systems there might be an issue.

This type of investigation is rarely ever carried out, but it might be needed in this case.  Both Apple and Google are making smartphones a major part of their companies, both through Android and the iPhone.  However, the investigation will only really matter if those areas where the two companies compete make for more than 2 percent of profit for either company.  That point remains to be seen, but it wouldn’t be all that surprising if more than 2 percent of Apple’s profit comes from the iPhone and App Store.

Google is saying Schmidt steps out when the Apple board discusses smartphones, but there’s no mention of Levinston.  If this does pan out to be an issue, it will be interesting to see how well Apple and Google continue to work together on some things like the Google iPhone apps, or the integration of Google services in Apple’s iLife apps.

Read [NY Times]