Google’s chief executive Eric Schmidt has been forced to give up his role on Apple’s board of directors because of a conflict of interests.
Apple boss Steve Jobs explained that due to similarities between Google's business and Apple's projects, if Schmidt stayed on he would have to leave board meetings at sensitive moments.
Explaining the situation, Jobs says: "Unfortunately 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."
One area where the two companies compete is in the smartphone market, as Google's Android operating system is a direct rival of Apple's popular iPhone.
Federal Trade Commission officials had been monitoring the situation ahead of Schmidt's departure on Monday.
Richard Feinstein, director of the Bureau of Competition, suggests that the firms should be commended for recognising that sharing directors "raises competitive issues".
Schmidt joined Google's board of directors as chairman in March 2001 and became the company's chief executive in August 2001. He was elected to Apple's board of directors in August 2006.
