According to Google CEO Eric Schmidt, Bing is its main competitor - not Facebook or Apple. He sat down with Alan Murray of the Wall Street Journal, who was kind enough to post an embeddable video of the conversation. "What's interesting is we think of neither [Facebook or Apple] as a competitive threat...our competitor is Bing. And it's interesting, for years, people have asked about Microsoft and everyone has forgot about Bing." He calls Bing a "well run, highly competitive search engine". He doesn't get into Bing's partnership with Yahoo, but that clearly has to be considered a big part of Google's headache in search competition.
When asked about being more concerned about Bing 5-10 years down the road, he said, "Facebook is too early to tell. Facebook is a company of consequence, and they're doing an excellent job building a social network." He also says that people forget Apple is a partner of Google. Schmidt talks about a number of other topics, such as privacy, China, his thoughts on the "web is dead" article, President Obama, social media, and more.