Prior to eBay Live an event that is slated to occur in Boston, there is news that has shocked the SEO world. eBay, the auction giant pulled all its US AdWords ads off Google, in order to protest a planned party that was coinciding with their live event. The planned party was organized to promote Google Checkout called Let Freedom Ring.
The big step that was taken by eBay was confirmed by one of their spokesperson.
Google planned the party to expose eBay sellers to its PayPal competitor. eBay was not providing Google Checkout as a payment option for sellers and buyers. Google said that eBay was not showing any positive move to work with Checkout. Moreover, eBay officially has decided on its own that Checkout is unproven, even after a year in the market. Its clear that eBay does not want any sort of competition for PayPal.
Apparently, Google has canceled the party, a move appreciated by eBay. Outside the US, Google is the sole provider of ads on international eBay properties. Last year, eBay had been actively looking for partners to oppose what it perceived as a too-powerful Google. The outcome was a partnership with Yahoo, who is the exclusive provider of ads on eBay's US site.
The step taken by Google puts a question mark on Google's motives and rationale. Google must get access to eBay's marketplace as a strategic initiative for Checkout. On the other hand, one must not forget that eBay gets huge amounts of traffic from Adwords. The whole episode is a reminiscent of the tiff between Google and Viacom over YouTube. To know more on this check this link