June 14, 2007

eBay vs. Google - Round #1

Not much commentary is needed on this one. Here’s what happened:

(1) eBay doesn’t allow merchants to use Google Checkout to settle eBay transactions (eBay uses PayPal, which they own).
(2) Google invited eBay online sellers attending eBay Live! in Boston this week to a party that they called the Google Checkout Freedom Party (to be held just blocks from eBay Live's party).
(3) eBay decides to pull all U.S. advertising on Google (they're Google's largest advertiser)
(4) Google backs down, cancels the party.
(5) Google looks like a complete wimp; eBay looks like a bully.

The party appeared to be nothing more than Google poking a little fun at eBay’s restrictive policies. eBay hit back with the biggest weapon they had, suggesting that tension between the companies goes very deep. Stay tuned for more . . . this fight is far from over.

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