Google blinks first in eBay tiff

Google blinks first in eBay tiff
Online search giant Google has apparently canceled a Boston party that was to be held on the same day as the annual convention of eBay's largest sellers. Google's event was intended to promote Google Checkout the new online payment system that is being touted as a rival to eBay's PayPal.

Apparently Google's supposed taunt did not go down well with eBay for it canceled all the ads that it purchases on Google's search engine results, according to the IDG News Service. "I won't comment whether that was directly tied to Google's plans to have that party," said Hani Durzy, an eBay spokesman.

According to the latest Nielsen/NetRatings, eBay happens to be the biggest advertiser of Google search ads. Analysts say that although eBay has acted decisively, it might need to rethink its strategy in the long run.

But they agree that the Boston event might be the main reason for eBay pulling its ads off Google. Scot Wingo, the chief executive of ChannelAdvisor.com said as much. "I don't think anyone believes that any more than we believe that eBay does not allow sellers to use Checkout because the service is unproven," he opined.

By late Wednesday Google appeared to have got the message and canceled the party. Durzy said eBay was happy that Google backed out and said that Google's behavior was not ideal in a partnership situation.

The official Google Blog said that eBay Live attendees had plenty of things to do in Boston and they did not want to distract them, "After speaking with officials at eBay, we at Google agreed that it was better for us not to feature this event during the eBay Live conference," the post added.