In a previous article I looked at what’s going on with Google and its split with Apple. Recall that Apple has been in talks with Microsoft to replace Google with Bing as the default engine on their phones.

Google it seems has responded by activating multi-touch features on its Nexus One line of phones. There was a gentleman’s agreement between the two developers that Google would not encroach upon Apple’s intellectual property; this was alluded to by both companies in February of last year. Such agreements seem to be a thing of the past.

The question should be posed with regards to the timing of such a decision. Why now if these phones have been capable of multi-touch for a year? Why is multi-touch being used outside of the US? Android’s Chief Andy Rubin provided an unconvincing argument stating that he didn’t like the multi-touch features, which is why they had not yet been implemented in the US. Some speculations have been made about Google not finding a one handed alternative that is viable.

This shift in relations is going to have a dramatic impact on dominance of the tech industry. Apple is no longer without competition. Take a look at a concept video from the Chrome OS team. Given the increasing threat that Google presents, coupled with last year’s resignation of Eric Schmidt from Apple’s board it would seem that Google has been planning to become Apple’s competitor for quite some time.

What’s worrisome for Apple is that they have a very capable competitor. The chrome web browser has gained a share of the browser market, the Chrome OS net book will be competing with the tablet, and the Nexus One is selling well and its market is growing.

And unlike in the past, they aren’t blazing ahead of the competition. The iPod was a tremendous success because it made MP3 players easy to use and aesthetically pleasing. The iPhone was a hit because it pushed the boundaries of our conception of mobile computing. The Nexus One is capable of challenging its market share. Apple’s new tablet is an attempt at forcing a shift in consumer behaviour, but it won’t be the only tablet on the market.

Should we see Bing replace Google on iPhones, a blow that is expected to come within a few months, these two companies, once eager collaborators, will engage in increasing levels of hostility.

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