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Google CEO Eric Schmidt has rather belatedly resigned from the Apple board of directors, as the competitive differences between the two firms become too glaring to ignore.

Schmidt already excused himself from discussions of the iPhone, since Google announced its own handset software platform Android, and now the businesses are overlapping more than ever after the launch of Chrome OS (and conflicting too, with the row over Google Voice being barred from the iPhone App Store just the latest example).

Apple CEO Steve Jobs said in a statement: "Unfortunately, as Google enters most 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."

In May, Schmidt even saw a government inquiry into his role on Apple's board, though he argued that Apple was not a primary competitor. But this position became really untenable when Chrome OS launched, offering an alternative to the 'fat client' device and software platform model advocated not just by Microsoft but Apple. Last month, Forbes magazine went as far as to ask: "Why is Google stealing Apple's ideas? Short answer: because they're good. Long answer: because Google has none of its own." It went on to hint that Google and Apple are now full-on, though "accidental", competitors, with Google emulating the key moves of its ally.

Any defection from Windows in the past has primarily benefited Apple, particularly before Linux started to gain acceptance as a viable PC system. Similarly, those wanting more out of their smartphone web experience than Nokia or Motorola were offering have tended to turn to the iPhone. This means that, although Chrome OS is clearly gunning for Microsoft, Apple stands to lose out too, because it could lose its position as favorite alternative to Windows (or Symbian).

This has put Google in a dilemma. The two companies have traditionally banded together closely against the common Redmond enemy, and banged the drum for the open web model, however proprietary the platforms with which Apple pursued that. But as the resignation of Schmidt shows, that delicate balance has now been broken.

The news came amid an inquiry by the FCC to understand Apple's recent rejection of Google Voice for iPhone.

And Google may face rejuvenated competition of its own, as Yahoo said it would shift its focus to mobile services technology, advertising and content, after selling its mainstream search business to Microsoft. In an interview with The New York Times, Yahoo CEO Carol Bartz said her company could no longer continue to match the level of investment Google and Microsoft were making in their search efforts. She said the cut in search-related marketing and infrastructure costs will free up cash to invest in the mobile business.

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