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On Monday, Google (Nasdaq: GOOG) CEO Eric Schmidt stepped down from Apple's (Nasdaq: AAPL) board of directors, just three months after vowing to stay on. However, that announcement was apparently not enough to satisfy federal regulators -- the Federal Trade Commission later reiterated that it would continue looking into the two companies' top-level ties.
Meanwhile, the Federal Communications Commission continues its investigation into Apple's rejection of the Google Voice application and its removal of related applications from the App Store.
The FCC and FTC could spell trouble for Apple; however, there is hope: Apple's likely to clinch the China market for the iPhone, and reports are running wild that it plans to soon introduce a tablet product.
Parting Is Such Sweet Sorrow
Schmidt's departure from Apple's board was almost inevitable, despite comments made in May that he intended to stay on.
"Google is competing with Apple in far too many areas for things to be comfortable," Julien Blin, CEO and principal analyst at JBB Research, told MacNewsWorld.
Google's Android platform is pitted against the iPhone OS; Google's Chrome browser is battling Apple's Safari browser; and Google is planning a Chrome operating system that could rival Mac OS X.
"Things got very awkward especially after Google's announcement of the Chrome operating system," Blin said. "He must have faced pressure from Apple, Google and the FTC."
Schmidt put a good face on the issue. "I have very much enjoyed my time on the Apple board," he told MacNewsWorld. "It's a fantastic company. But, as Apple explained, we've agreed it makes sense for me to step down now."
The Feds Ride to War
Pressure from the FTC will likely continue because there is so much fertile ground for examination. Google Maps is the iPhone's de facto map app, and Google reportedly has special developer status for the iPhone -- Google Voice notwithstanding.
The FTC is looking into board-level ties between Apple and Google, and Schmidt is not the only name to come up. Genentech Board Chairman and former CEO Arthur D. Levinson still remains on both boards.
At issue is the question of whether or not these ties constitute anti-competitive behavior. If the FTC finds that they do, it could impose penalties on Apple, although the Cupertino firm is more likely to kick and scream and raise a fuss than go gently into that good night.
Levinson, who's still on both boards, is already facing calls for him to decide which board to remain on.
He may need to make up his mind fast if he wants to serve either company. "We will continue to investigate remaining interlocking directorates between the companies," Richard Feinstein, director of the FTC's Bureau of Competition, said in a statement on Monday, after Schmidt's departure from Apple was announced.
Meanwhile, the FCC is looking at whether or not Apple's barring of the Google Voice app from its App Store -- and its subsequent weeding out of Google Voice-related apps -- constitutes anti-competitive behavior.
Reductio Ad Absurdum
What happens if both the FTC and the FCC rule they have found the subjects of these probes engaged in anticompetitive behavior?
In that case, the rulings would hold that Google and Apple are together engaged in anticompetitive behavior against other firms through their board-level and other ties, and that Apple is simultaneously engaging in anticompetitive behavior against Google.
So who will have to do what to whom to redress what wrong?
It doesn't matter; all investors should care about is whether or not Apple's share prices will be impacted, and at this point, nobody can tell for sure.
In the meantime, though, Apple's leadership may feel obligated to temper its plans and not be so bold in seeking alliances.
Apple's share prices have been on the uptick these past weeks, closing at $165.55 on Tuesday, compared to $134.42 on July 6 -- an increase of around 20 percent in less than a month.
Forget Kilimanjaro, This Snow Leopard Rocks
Still, there are indications that Apple's share prices could continue climbing.
Pre-orders for its upcoming Snow Leopard operating system have been in the top 100 on Amazon.com's (Nasdaq: AMZN) software bestseller list for four or five days, depending on the version.
The operating system, also known as "Mac OS X version 10.6," will be generally available in September.
That kind of demand can only be good for Apple's bottom line.
Go East, Young Man
While there has been no official comment from either Apple or China Unicom on the matter, chances are strong that an iPhone deal will be announced soon.
Kevin Wang, director of China research at iSuppli, told MacNewsWorld that a deal is imminent.
China Unicom will be Apple's exclusive carrier for the iPhone in China and is contracting to sell 1 million iPhones per year, Wang said. That will just match the 1 million iPhones that he said are sold yearly on the gray market in China.
China Unicom will likely pay Apple about 3,000 Yuan, or about US$438, per iPhone and subsidize their sales 
so as to beat the prices of gray market iPhones, he said.
"It's a good deal for China Unicom," he pointed out.
If it's real, it looks to be a good deal for Apple, too. With many millions of iPhones already sold stateside, the U.S. market is getting saturated, and China is a new market that it can open up -- one where demand for the iPhone is strong.
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