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Apple and Google are already quite cozy — but could they be getting even closer over Apple's rumored Web services? A source close to Google says the company is about to make a big announcement with Apple, likely in conjunction with Apple's Worldwide Developers Conference next week. It could be nothing more than integration of a new iPhone's GPS features with Google Maps. But our source thinks more is at stake.

Through its .Mac subscription service, Apple currently offers Mac-only versions of email, bookmarks, file storage, and photo sharing. Google offers all the same services for free, though it charges for extra storage. Apple might well hand its Web businesses over to Google, in exchange for a share of the revenue. Competing with Google, Yahoo, and Microsoft in online applications would seem like a fool's game.

Why it might not happen: Steve Jobs has long bragged about being the only company that "makes the whole widget," by which he meant hardware and software. Nowadays, the whole widget means hardware, software, and services. Apple has proved it can develop software for Windows with iTunes; ceding the Web to Google might be too much of a blow to the corporate ego.