eBay Vs. Google: So Much for Coopetition

Posted by: Rob Hof on June 13, 2007

Strangely adolescent behavior from these two Web giants. Google decides to throw a party at eBay Live, the online marketplace’s annual memberfest, protesting eBay’s (admittedly hard-to-justify) ban of Google Checkout. So eBay pulls its search ads from Google (and that’s lots of ads). Google, attempting to regain the high ground, or at least get the ads back backs down and cancels the event. Next move: eBay. And I bet it’s not a permanent departure from Google. After all, eBay drives a lot of traffic to its merchants by buying all those Google ads, and they won’t be happy to find suddenly that the buyers aren’t coming. Yeesh.

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Reader Comments

Gemini

June 18, 2007 12:23 AM

As someone who one of ebay's acquired companies has screwed quite badly, I'm among Many small businesses whose income is based on ecommerce that is glad to see Google in a fight with eBay, adolescent or not. eBay needs to admit that with its weird policies, it has totally screwed up PayPal to the point that most of my B2B clients Refuse to deal with a company that uses PayPal. They told me as much in the last survey I did. Paypal wasn't mentioned on the questionaire, nor was the incident we had with them that screwed up cash flow for a year and a half. But under the question, in the last year, why haven't you made a purchase, some variation of "You take PayPal" was among the top answers.

I switched to Google Checkout only and we've never been happier. For me eBay accepting Google Checkout was their once chance to redeem themselves and they screwed up badly by not doing it. I don't care how big a company is, if it takes PayPal, I'm not buying. I'll go to their competitor.

Alex U

June 18, 2007 12:08 PM

Whatever happened to free markets and competition? My colleague and I got thrown out of eBay Live for wearing Google insignia and promoting our website that uses Google Checkout.

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BusinessWeek writers Peter Burrows, Cliff Edwards, Olga Kharif, Aaron Ricadela, Douglas MacMillan, and Spencer Ante dig behind the headlines to analyze what’s really happening throughout the world of technology. One of the first mainstream media tech blogs, Tech Beat covers everything from tech bellwethers like Apple, Google, and Intel and emerging new leaders such as Facebook to new technologies, trends, and controversies.

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