Sure, Microsoft might not be the impenetrable fortress it used to be (or seem), and Google's rise has given the software behemoth more reason to put up its guard.

Then comes this report from Politico, which claims Google CEO Eric Schmidt's relationship with President-Elect Barack Obama has competitors in fear mode.

A gem from Eamon Javers' piece:

"This terrifies Microsoft," said a Democratic lobbyist familiar with the industry. "There's a reason why people are scared to death of Google."

The report comes after Schmidt—one of many names mentioned as possible picks for national CTO under Obama—said he wouldn't accept the post if asked.

The Politico report also cites Google's recent decision to walk away from a search advertising deal with rival Yahoo, citing the possibility of an antitrust lawsuit. But would President Obama weigh in and let a deal like that go through?

Hard to say. They don't call it the most powerful office in the world for nothing, and we've seen much more egregious acts of favortism in the past. But you can bet that the next time Google finds itself under regulatory scrutiny, articles like this will spring up again.