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Asked earlier this year if he would resign from Apple’s board in the face of Federal Trade Commission scrutiny of the close ties between the two companies’ boards of directors, Google CEO Eric Schmidt replied simply, “It hasn’t crossed my mind.” Well, apparently it has now.

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Once again for old time’s sake, the Yahoo-Microsoft soap opera in Digital Daily intros, with apologies to Steven Spielberg, Mel Blanc, Queen, Neil Diamond, Barbra Streisand, Tallulah Bankhead, Marlene Dietrich and the entire cast of “The Sound of Music.”

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Google chief Eric Schmidt has some words of advice for outsiders insisting he should recuse himself from Apple’s board of directors following the unveiling of Chrome OS, an operating system that will presumably compete with Apple’s Mac OS X: You can have my Apple board seat when you pry it from my cold, dead hands.

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You can’t overtake a market in a month, particularly one dominated by Google. But you can certainly chip away a small foothold. Which is what Microsoft managed to do with its new search engine, Bing, last month. According to StatCounter, Microsoft’s share of the market grew to 8.23 percent in June, up from the 7.8 percent share it held prior to Bing’s launch.

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Early gains do not guarantee a long-term increase in search market share, and thanks to its experience with Live Search and Live Search Cashback, Microsoft knows this better than anyone. That said, Redmond’s new search engine, Bing, does seem to be making some solid progress.

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Microsoft’s recently unveiled search engine, Bing, has piqued Google’s interest, but the search sovereign isn’t losing any sleep over it–or it would like us all to think that, anyway. In an interview with Fox Business Network Tuesday, Google CEO Eric Schmidt dismissed Bing as the latest in a string of feeble search efforts at Microsoft.

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This Weekend Update is particularly exciting because of all the things happening here at All Things Digital. There is, of course, the upcoming D7 Conference, which promises to be more tech-extravaganza fun than a tweet from @sockington (if only half as cute), but this past week has also seen the launch of our very own iPhone app, meaning that ATD has gone mobile–smart news for your smartphone (we’re still working out potential taglines).

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It was like a liveblogging tournament this past week–one that included a lot of the big players, but ended in a three-way tie.

According to BoomTown’s reliable sources, the elusive Microsoft-Yahoo deal is making “meaningful” progress. Accordingly, BoomTown also wondered whether Ballmer planned on visiting Carol Bartz on his trip to the Bay Area this week, or if the proximity of Stanford to Yahoo was just chance, given that Stanford was his main destination.

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The Federal Trade Commission may worry about the ties between the Google and Apple boards, but Google CEO Eric Schmidt clearly doesn’t share its concern. Asked during a press luncheon if he would resign from Apple’s board in the face of FTC scrutiny, Schmidt bristled–“Why would you ask that question?”–and then said simply, “It hasn’t crossed my mind.”

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In advance of its shareholder meeting today, Google is holding a press event at its Mountain View, Calif., campus with CEO Eric Schmidt presiding. Also on hand: Dave Drummond, senior vice president of corporate development; Susan Wojcicki, vice president for product management, and Marissa Mayer, vice president, search products and user experience. Hot topics of the day: Google’s and Apple’s interlocking boards, YouTube and the company’s thoughts on the econalypse, AOL and netbooks.

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If the Federal Trade Commission takes issue with Google and Apple’s interlocking boards, Google will be well prepared. Last October, Wilson Sonsini Goodrich and Rosati–the company’s outside law firm–gave a presentation on this very issue. Ironic, yeah? Click through to read the document in its entirety.

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QOTD

“In the end, in attempting to ‘do no evil,’ Google has done exactly that. I say this not just as someone running a content site but also as an end user. If this inequity of support continues along these lines, we will see a continuing destruction of our journalistic enterprises–enterprises that are one of the core building blocks of our democracy. Last year, while addressing the magazine publishers and editors of the MPA at the Google Campus, Eric Schmidt suggested that the Web was a ‘cesspool’ and that it was up to the major journalistic brands to clean it up. Well, Eric, in a great many ways, Google has helped to create that cesspool, and as such I would hope that it can be part of the solution.”

– Forbes CEO Jim Spanfeller

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