BHP Billiton's proposed bid for Rio Tinto would create a mining giant with sales of $100 billion a year, or just a bit smaller than the entire gross domestic product of Peru.

But, however big these huge companies get, they still have to obey the laws of the countries in which they operate. And when it comes to getting clearance for deals such as BHP's hostile bid for Rio it is the governments that are in the driving seat.

The European Commission has now given BHP a list of its objections to the Rio takeover and if the deal is to be successful, BHP must find a way to overcome these concerns.

If the commission is too demanding, there will be no deal.

BHP has been less co-operative with the Japanese Government, which has repeatedly asked for information on the deal but been ignored.

The Japanese are now so irritated that they will order BHP to supply details and if the company refuses to do so, it could face criminal proceedings.

Japan has no direct power over the fate of the deal, but its indirect influence could be decisive. It seems that the Japanese have already had informal talks with the European Union about blocking the deal and are considering making a formal diplomatic request.

This would up the stakes significantly as the EU is unlikely to dismiss the concerns of another state quickly, particularly one as important as Japan.

BHP needs to remember its place in the global hierarchy and take Japan seriously - and quickly - or risk real problems with the EU.

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