On the eve of the Google I/O summit, Google’s CEO talked to Reuters about Google’s relationship with Apple, specifically as it related to iAds and Admob. Some points:

Google has been at a disadvantage because the FTC investigation has left  Admob in hiatus while other ad networks (iAds) heats up. Google is prepared to fight the U.S. government “very hard” if regulators block the search leader’s acquisition of mobile advertising firm AdMob.  “We’re likely to fight very hard,” he said. “It’s a very strategic acquisition for Google.”. Apple blocking Adobe’s Flash also is being looked at by the FTC Schmidt said Apple’s changes in terms of services “discriminatory against other partners.”  Apple doesn’t let other advertising networks access the same data that Apple has access to, so advertisers can’t target or get analytics from their ads.  He insisted that he and Apple CEO Steve Jobs remain good friends and that the two companies will remain both rivals and collaborators in different business areas.  “The relationship will continue to be complicated,” he said.