Apple is in talks with Microsoft about integrating Bing as the default search engine on the iconic device, according to a report from Business Week. The report cites two people familiar with the matter who wished to remain anonymous because the information had not yet been made public.
If true, the move would signal not only a deterioration of Apple's relationship with Google but also a strengthening of ties with Microsoft, Apple's longtime foe. As it stands, Google is currently the default search engine on the iPhone. Google shares with Apple revenue generated from advertisements placed alongside its search results.
Making Bing the default search engine for the iPhone would require users to manually switch to Google in their device's settings if they choose to make Google their default search engine. iPhone users currently have to download a separate Bing application from the App Store.
Apple and Google maintained a cozy relationship for years, with Eric Schmidt, CEO of Google, actually sitting on Apple's board. However, Schmidt resigned from the position late last summer, citing "conflict of interests." Immediately following Schmidt's departure there, Richard Feinstein, director of the FTC's Bureau of Competition, acknowledged that the FTC was and would continue to look into the relationship between the two companies.
It seems that since Schmidt left Apple, Google has continued to put up direct competition to the iPhone, as well as subtle challenges to Apple's desktop division. Late last year, Google announced it would be rolling out its own OS, Google Chrome. Additionally, the popularity of Google's Android platform and the recent release of a direct-to-consumer smartphone, the Nexus One, can be seen as nothing short of direct competitors to Apple's iPhone.