Apple first thing Monday morning said Google CEO Eric Schmidt is leaving the Apple board, a position that has raised eyebrows with the regulators as Google enters sectors such as phones and operating systems in competition with Apple.

The Apple announcement, put in the mouth of CEO Steve Jobs, acknowledged the situation.

It said, "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."

Last week Apple barred two Google apps from its iPhone App Store, a move that also piqued regulator interest.

Schmidt has been on the Apple board for the last three years.