Engadget reports about the rivalry between Google and Apple, you can read it over here.
According to the NYT then, the heart of the dispute is betrayal, or Jobs' belief that Schmidt (a former Apple board member) "picked his pocket" by developing cellphones that "physically, technologically and spiritually resembled the iPhone." Here's how one especially feisty encounter is described:
"At one particularly heated meeting in 2008 on Google's campus, Mr. Jobs angrily told Google executives that if they deployed a version of multitouch - the popular iPhone feature that allows users to control their devices with flicks of their fingers - he would sue. Two people briefed on the meeting described it as "fierce" and "heated.""