Apple today announced that Google CEO Eric Schmidt has resigned from Apple's Board of Directors due to increasing competition between the two companies and its impact on his 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."

Following Google's announcement of Chrome OS last month, Schmidt acknowledged that he would discuss the future of his role with Apple. Even before the Chrome OS announcement, the U.S Federal Trade Commission had begun taking an interest in the apparent close ties between Apple and Google. At that time, both Schmidt and former Genentech CEO Arthur Levinson held positions on both companies' Boards of Directors. Levinson continues to hold Board positions with both companies.