Google is Afraid of Windows Phone

Of course they are afraid. 97% of their revenues were/are from search and nothing else. So, from their perspective, increasing the medium through which their search function is accessed is pretty damn high. You can see it in their target models.

Project Loon - way to push their services Google Fiber - way to push their services Self driving cars - way to push their services Glass - way to push their services

Apple didn't care about search/mapping services for a while when they started out. So Google has no issues building out trying to poach Apple users.

From a MS perspective, not only do they not have competing services, they have a different cost model for their products and services and a different architecture as a result. Every user Bing picks up or MS picks up, that's one less user for Google. So, of course, they are panicking.