How quickly things changed. By 2007, Davidson had been joined by 11 other lobbyists, among them a former high-ranking Justice Department antitrust lawyer. And now, two years later, Google CEO Eric Schmidt has been named by President Obama to his Council of Advisors on Science and Technology. In that role he’ll work with a group of distinguished academics and executives–a group that, incidentally, includes Craig Mundie, chief research and strategy officer at Microsoft (MSFT)–to help the administration “formulate policy in the many areas where understanding of science, technology, and innovation is key to strengthening our economy and forming policy that works for the American people.”

Schmidt’s appointment isn’t all that surprising. He served as an informal adviser to Obama during his campaign and he’s a smart guy who’s got some strong opinions about network neutrality, next-generation broadband, and intellectual property–issues that figure high on the president’s tech agenda. Still, it’s one more indication–and the biggest one yet–that Google has become firmly part of the Washington establishment.

Google abandoned [its deal with Yahoo] not because pressing ahead with it ‘risked’ a protracted legal battle, but because it guaranteed one.”

I wrote that on Nov. 6, following the official dissolution of Google’s (GOOG) proposed advertising partnership with Yahoo (YHOO). Turns out the guarantee to which I referred was an ironclad one. Sanford Litvack, the attorney who would have been lead counsel in the event of a government antitrust case against Google, tells American Lawyer Daily that the Department of Justice was literally hours away from suing the company when it bailed on the deal. “We were going to file the complaint at a certain time during the day,” he explains. “We told them we were going to file the complaint at that time of day. Three hours before, they told us they were abandoning the agreement.”

Had Google not turned tail, the DOJ would have charged it with violating Sections 1 and 2 of the Sherman Act. Said Litvack, “It would have ended up also alleging that Google had a monopoly and that [the advertising pact] would have furthered their monopoly.”

As I wrote back in November, “Internet search advertising and Internet search syndication are natural monopoly businesses. And, according to the DOJ, Google is their presiding monopolist.” Truer words, eh?