Google CEO Dr. Eric Schmidt

Apple has announced that Google CEO Eric Schmidt is resigning from the board of directors. This decision stems from the fact that both companies were entering markets as competitors and not allies, which put strain of Schmidt’s effectiveness as an Apple board member.

“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.”

After this story broke the Federal Trade Commission released a statement commending Schmidt’s resignation. Even in light of these recent developments, the FTC still plans to investigate the two companies for anti-competitive activities.

“On August 3, 2009, Apple announced that Eric E. Schmidt, Chief Executive Officer of Google, was stepping down from its board. “We have been investigating the Google/Apple interlocking directorates issue for some time and commend them for recognizing that sharing directors raises competitive issues, as Google and Apple increasingly compete with each other,” said Bureau of Competition Director Richard Feinstein. “We will continue to investigate remaining interlocking directorates between the companies.”

It should also be noted that Genentech CEO Arthur Levinson continues to serve on both companies board and former Vice-President Al Gore serves as both a director on Apple’s Board and a  advisor to Google and Eric Schmidt.