Earlier this week, the broke the story that the . A provision of the Clayton Antitrust Act of 1914 bars someone from serving on the board of two rival companies if it means reduced competition. The feds doubtlessly have mobile phones on the brain, since Apple makes the iPhone while Google produces the Android operating system that powers competing smart phones.

Both Schmidt and former Genentech CEO Arthur Levinson have seats on the boards of directors for Apple and Google.

Prior to Thursday's shareholder meeting, Schmidt told reporters that he recuses himself from Apple board discussions when the subject of the iPhone comes up. And he dismissed the notion that Apple and Google are business rivals, given that his company primarily focuses its efforts on search.

"I don't think Google sees Apple as a primary competitor," Schmidt says in this on the meeting.

Schmidt has served on Apple's board of directors since 2006.