Google’s web search dominance is being threatened by Microsoft’s latest development Bing. Lately, New York Post reported that “FEAR GRIPS GOOGLE” and Google co-founder Sergey Brin is so upset with the launch of Microsoft’s Bing search engine, that he has his top engineers start working on “urgent upgrades” to Google’s service. Brin himself is leading a team of search engine specialists to determine how the search algorithms of Bing differs from one he founded in 1998 with Stanford University classmate Larry Page.

According to an anonymous source, described as an “insider” told the newspaper that “New search engines have come and gone in the past 10 years, but Bing seems to be of particular interest to Sergey!”

Google’s spokesman refused to comment on the level of Brin’s interest in Bing, but he said Google always has a team working on improving search. He also added that Google’s algorithm is constantly evolving and Google dedicates more time and energy to search than anything else

Google is facing an ad assault from Microsoft, which launched Bing earlier this month as an upgrade to its default search engine. The software giant is reportedly spending $80 million to $100 million campaign for Bing, whereas Google spent just $25 million in total on advertising last year.

According to ComScore, Bing’s launch upped Microsoft’s search share to 11.1 percent last week, as compared to 9.1 percent the prior week. Bing also had 15.5 percent daily penetration, as opposed to 13.8 percent in the prior week, stating the fact that more people were using Microsoft.

However, Google CEO Eric Schmidt was pretty tight-lipped when queried about Bing’s arrival and he was not impressed with initial increase in Microsoft’s search share.

In an exclusive interview with FoxBusiness.com, Google CEO Eric Schmidt said “It’s not the first entry for Microsoft, They do this about once a year.”

Google Chief Financial Officer Patrick Pichette said that Google is going to hold a “review…on it with the executive committee.”

If Yahoo decides to stop competing in the search market, within the next few years Bing might end up being the only true alternative to Google. Bing has a long way to  go before it makes a dent in Google’s search share, though!

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