Ebay / Google spat - Update

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At first glance it seems that Google would be the loser in the escalating drama between the two Internet giants. With Ebay pulling all advertising from Google investors at the Google camp are likely to be a bit edgy. We'll have to watch and see.

However there is another third party interest group who may suffer as a result of this dispute. The Ebay merchants who work feverishly to optimize their product listings to get to the top of Ebays' listings so that search visitors who come in from Google will find their products first.

Without Google driving search visitors to Ebay listings, Ebay merchants are likely to see a dramatic decrease in number of impressions their listings receive. Less visitors means less bid competition which could drive the final bid prices down for Ebay merchants. Good for Ebay bidders, not good for Ebay merchants.

A strange observation I'm pondering. Ebay has been displaying ads delivered by Yahoo on their network for nearly a year now, yet Yahoo has a competing auction service. Why would Ebay be so harsh on Google by not offering Google's payment solution "Google Checkout" to Ebay users?

Read more:

PC World - After eBay Pulls Ads, Google Cancels Offending Party

Yahoo Makes Deal on Ads With eBay

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