Will Google Launch the iTunes Killer?

The details are sketchy, but it appears that Google (GOOG) is planning to introduce a new search service that will feature streaming music and an option to buy songs.

According to CNet, the service will be called OneBox, and Google will partner with two separate online music companies: Lala and iLike.

Here's how it will work, according to TechCrunch's Michael Arrington. Type an artist's name in the query field, and the usual search results will pop up. But just above the results, you'll see a thumbnail photograph of the musician or group, along with four different links to play streaming songs, provided via Lala and iLike. Click on each of these, and a music player will pop up and stream at least some of the songs, along with an option to buy it from Google's partners.

Arrington adds that Google is expected to formally announce this service on Oct. 28, at which point we'll learn more details. Meanwhile, we're awfully intrigued by a throwaway line by PC World reporter Daniel Ionescu: "Is Google gunning to become the next Apple?"

Indeed. This feels like Google's most direct challenge yet to Apple's (AAPL) line of business. Forget about the Chrome operating system or the various smartphone wars; Google is taking on iTunes. If these reports are true, the long honeymoon between the two companies is definitely over.