Google deal with Yahoo!: Forget the regulators

Google (NASDAQ: GOOG) does not care much what regulators think about its deal to sell search advertising for Yahoo! (NASDAQ: YHOO). The company will start the new business, and if antitrust officials catch up with them later, then so be it.

According to the AP, "After voluntarily delaying the start of the Yahoo deal three months ago to give antitrust regulators time to review the potential impact, CEO Eric Schmidt said he isn't willing to wait very much beyond an Oct. 11 deadline spelled out in the companies' contract."

Google is taking a dangerous risk. The agencies in the U.S. and Europe handling the investigation into the partnership may view the news as defiance, Google's attempt to "defang" their efforts. That, in turn, makes it more likely that Google will receive a serious challenge to its plans.

Google may have had to wait several more months for a green light on its Yahoo! plans. Betting that authorities will eventually do nothing is a slap in the faces of governments, which could scuttle its efforts.

Douglas A. McIntyre is an editor at 24/7 Wall St.