NEW YORK (Bloomberg) - Arthur Levinson, a director at Apple Inc. and Google Inc., stepped down from Google's board, a move that resolved a regulatory probe into overlapping directors at the two companies.

Mr. Levinson's resignation, announced by Google this morning, staved off the threat of a Federal Trade Commission (FTC) lawsuit. Google CEO Eric Schmidt stepped down from Apple's board in August. Having the two men serve on both boards had raised antitrust concerns at the FTC because the companies increasingly compete in the same markets.

"The investigation is over," FTC chairman Jonathan Leibowitz said in an interview. "This allows the companies to move on and do what they do best, which is to make better products."

Google and Apple have expanded into each other's turf over the past two years. Both companies offer mobile-phone software and Internet browsers, and Google is developing an operating system for personal computers. When Apple announced Mr. Schmidt's resignation, the company said conflicts of interest would have forced him to recuse himself from more meetings. Even so, the companies aren't direct competitors, Mr. Schmidt said this month.

The FTC's scrutiny of Google's board may be meant to send the message that it is cracking down on anticompetitive practices, said James Friedland, a Cowen & Co. analyst in New York.

"It's almost like firing a warning shot to say, 'Hey, we're watching'," said Mr. Friedland, who rates Google "outperform" and does not own the shares.

The FTC, which disclosed the Google-Apple review in August, declined to comment on any other probes. "I don't comment on investigations," Mr. Leibowitz said.

Mr. Levinson, 59, joined Google's board in April 2004. He has served as a director at Apple, the maker of the iPhone and Macintosh computers, since 2000. Google's statement on Monday did not give a reason why Mr. Levinson resigned.

Matt Furman, a spokesman for Mountain View, California- based Google, declined to comment beyond the statement. Katie Cotton, a spokeswoman for Apple, said Levinson is an "excellent" director, declining to comment further.

"No one who is busy running a business wants the distraction of an FTC investigation into overlapping board members, whether or not there's a violation," said Greg Neppl, an antitrust attorney at Foley & Lardner in Washington. "The investigation itself becomes a nuisance."

Google, owner of the world's most popular Internet search engine, is developing a computer operating system called Chrome. Google expects the Chrome OS to be on laptops next year.

The company also makes Android, a free operating system for phones. Motorola Inc. and Samsung Electronics Co. have announced plans to sell Android-based phones in the coming weeks.

Also, Verizon Wireless said this month that it will work with Google to develop Android devices.

Android products compete in the smart-phone market with Apple's iPhone. For now, Android does not contribute to Google's revenue, Mr. Friedland said.

"Android represents an interesting long-term investment for Google, but if Google were to stop investing in Android or shut it down today, there would be no impact at all," he said.

At an event in Washington earlier this month, Mr. Schmidt, 54, said he hoped that Mr. Levinson would not have to leave the board of either company.

Mr. Levinson is one of Apple's two lead directors, along with Intuit Inc. chairman Bill Campbell. Mr. Levinson and Mr. Campbell were briefed on the health of Apple CEO Steve Jobs before he had a liver transplant earlier this year, according to a person familiar with the matter. Mr. Levinson, who is chairman of Roche Holding AG's Genentech unit, declined to comment, said Geoff Teeter, a Genentech spokesman.

Mr. Campbell, 69, also serves as an adviser to Google. Mr. Campbell did not respond to an e-mail seeking comment.

Google climbed $7.79 to $524.04 in Nasdaq Stock Market trading at 4 p.m. New York time. The shares have risen 70 percent this year. Apple, based in Cupertino, California, advanced 34 cents to $190.81. That stock has more than doubled in value this year.