Microsoft in league with Apple ... to stop Google

Apple is in talks with Microsoft to replace Google as the default search engine on the iPhone, according to two people familiar with the matter.

The talks have been under way for weeks. The negotiations may not be concluded quickly and might still fall apart, the people said.

The discussions reflect the intensifying rivalry between Apple and Google, currently the main search engine on the iPhone. While the companies have worked as partners in the past and Google Chief Executive Officer Eric Schmidt served on Apple’s board, they now compete in markets such as mobile phones. Google introduced its Nexus One phone this month and offers a mobile operating system called Android.

Apple is also working on ways to manage ads displayed on its mobile devices, a move that would challenge Google’s advertising business, one of the people said.