The only way Google could be in worse trouble with European regulators right now is if Larry Page signed the order to wiretap Angela Merkel's phone himself. NSA revelations have hurt Google's European contracts and antitrust investigations are multiplying like Gremlins.

Joaquin Almunia is considered one of the most powerful regulators in tech because of his role as the European Union's antitrust chief. But now that the EU has decided not to let Google run roughshod over consumers and competitors, Almunia, who is texting buds with Google chairman Eric Schmidt, finds himself an awkward position.