SAN FRANCISCO (AFP) - Google chief executive Eric Schmidt resigned Monday from the board of Apple due to potential conflicts of interest as the two tech giants increasingly become rivals.

"Eric has been an excellent board member for Apple, investing his valuable time, talent, passion and wisdom to help make Apple successful," said a statement from Apple chief executive Steve Jobs.

Schmidt, who had been a member of the board since August 2006, could not function effectively with Google entering more of Apple's core businesses, such as the smart phone and personal computer operating system markets, said Jobs.

"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."

The Apple boss said the decision that this was the right time for Schmidt to go had been reached by mutual consent. His comments were backed up by the departing board member.

"I have very much enjoyed my time on the Apple board," Schmidt said. "It's a fantastic company. But, as Apple explained today we've agreed it makes sense for me to step down now."

Industry analyst Rob Enderle of Enderle Group in Silicon Valley said Schmidt should have left Apple's board of directors when Google first considered building an Android operating system to power smart phones that challenge iPhones.

Taiwan-based HTC released the first Android-driven "Google phone" in late 2008 and other mobile device makers have followed suit. Apple introduced the original iPhone in 2007.

"Schmidt, unfortunately, like many CEOs got caught up in the celebrity so he didn't want to give it up even though it was appropriate," Enderle said.

"I don't think he will be missed much. In any case, Steve Jobs runs his board, not the other way around, and even the heavy hitters on it have very little real impact."

Justifying Schmidt's presence on the Apple board was growing increasingly difficult to justify as the Cupertino, California-based maker of iPods, iPhones and Macintosh computers competes on an increasing number of fronts with Google.

Google launched a Chrome Web browser in September in a market where Apple's Safari software is a contender.

Mountain View, California-based Google is building open-source Chrome OS operating system software for lightweight "netbook" computers.

Apple has battled for decades in the computer market with Macintosh machines built on its own software.

The Federal Communications Commission (FCC) has asked Apple and AT&T to explain the decision to reject an application developed by Google for the iPhone.

FCC chairman Julius Genachowski said "inquiry letters" were sent on Friday to Apple, AT&T, the exclusive carrier for the iPhone in the United States, and Google.

The FCC move comes after Google said a Google Voice application for the iPhone was rejected by the iPhone App Store and related applications were removed.

In the letters to Apple and AT&T, the FCC asked whether the two companies had consulted in deciding to reject the applications, which have been described as a potential threat to services provided by the iPhone and AT&T.

Google Voice allows users to merge their home, office and mobile phones into a single number. It also allows them to make cheap international phone calls, send free SMS messages and provides transcripts of voicemail messages.

"The FCC review of why Apple pulled Google Voice off of the iPhone made it very clear that the conflicts of interest between Google and Apple made his remaining on the Apple board a serious problem for both companies," Enderle said, referring to Schmidt.

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