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From The Times

June 15, 2007

eBay takes its adverts off Google

Tom Bawden in New York

eBay has pulled all its advertising from Google after learning of the = search=20 giant=E2=80=99s plan to gatecrash its user conference this week to = promote Checkout, a=20 rival to eBay=E2=80=99s PayPal payment service.

The online auction site, which is Google=E2=80=99s biggest advertiser = by far,=20 cancelled the adverts indefinitely after the search engine invited = eBay=E2=80=99s=20 largest sellers, in Boston for their annual convention, to a rival = party.

Once at the party, which was scheduled for last night, Google planned = to=20 extol the virtues of its fledgeling Checkout online payment service.

But in a move that will give satisfaction to the growing army of=20 Google-haters, the search firm cancelled the event on Wednesday night = after eBay=20 announced that it would cease advertising with the search = engine.

The advertising debacle happened less than a month after Microsoft = branded=20 Google=E2=80=99s planned $3.1 billion (=C2=A31.6 billion) takeover of = DoubleClick, the online=20 advertising firm, as uncompetitive. Microsoft had made its own offer for = DoubleClick, but lost out to Google.

Roger Kay, president of End-point Technologies, the US consultancy, = said:=20 =E2=80=9CGoogle is the king of the hill and it is a natural human = emotion to wish for=20 the downfall of such a dominant company. The mantel has shifted from = Microsoft=20 to Google.=E2=80=9D

After Google spent nearly $1.7 billion on YouTube, the video-sharing = upstart,=20 media companies such as Viacom, the owner of MTV, began to step up = copyright=20 infringement claims relating to the site. They had been largely ignored = when it=20 was owned by a bunch of former students.

Mr Kay said: =E2=80=9CGoogle=E2=80=99s move seems mean spirited and = underhand and I am=20 surprised it stooped so low. But I=E2=80=99m glad eBay stood up to = Google, although I=20 don=E2=80=99t think eBay really needs to worry. Check-point = isn=E2=80=99t doing that well and=20 PayPal is the dominant method.=E2=80=9D

eBay, whose PayPal services handle about 80 per cent of American = internet=20 transactions, spends an estimated $100 million a year advertising with = Google.=20 Some 188 million eBay ads appeared on Google in March, more than double = the=20 number for Target, the department store chain that is the search = engine=E2=80=99s second=20 biggest advertiser, according to com-Score Networks.

Analysts estimate that between 10 per cent and 20 per cent of eBay = users are=20 led to the site by Google adverts. But PayPal generated $1.4 billion of = revenues=20 last year, nearly a quarter of the group=E2=80=99s total sales, and eBay = is concerned=20 that rival systems such as Checkout could erode that business.

Have=20 your say

Paypal is a rip off -ebay needs some = competition.
I hope Google gives them it.

Harry, Glasgow,

I think by not allowing Google's = checkout,=20 eBay is not only protecting its own baby but also is afraid that = Checkout might=20 acually turn much better and users may rapidly switch to it. Now that = Checkout=20 is a "proven" method of payment backed by a great company like Google, = eBay=20 should rethink its policies.

Mil, Boston, USA

Forgot to mention that Google = Checkout was=20 banned from use on eBay.

M, Overhill, USA

what are you talking about? =

paypal is=20 a rip off and ebay makes too much out of it, id love google checkout to = offer=20 competition

z, London,

This is about choice for eBay users. = Checkout=20 would give an alternative to moreorless having to use PayPal, which is = owned by=20 oh, guess who? eBay, that well-known charity. A bit of competition might = help=20 reduce costs for eBay sellers. That's what eBay is afraid of. This is = Google=20 fighting evil, not being evil.

Tim, Cambridge, UK

I'm really surprised Google would do = something=20 like that. I thought Google company motto was "Don't Be Evil." It seems = they are=20 not following that lately.

Lili, Beaverton, OR

I honestly trust Google over = Paypal/Ebay any=20 day. Look at the quality of ebay now.... who honestly buys that = overpriced=20 junk?

Eddie, New Orleans, LA

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