14 DAY TRIAL // The Internet giant eBay has stopped buying text adverts provided by the Mountain View company Google after the search giant started a powerful campaign against the auction website. Google recently announced a party for the merchants and the sellers registered with the company, in the detriment of the live event prepared by eBay in Boston. Obviously, eBay was somehow forced to respond to the challenge and decided to stop purchasing text adverts provided by the Mountain View company.
However, the hostilities are revealing some hidden details that somehow describe the evolution of the Google products. Let me explain it to you: according to Valleywag, Google and eBay signed a deal in 2003 that forced the auction website to buy adverts worth $100 million per year. The partnership was also requiring Google to avoid getting involved in the market, which means the Froogle - the "anonymous" product owned by the search giant - was forced to remain outdated. Froogle was quite an unpopular service owned by Google until recently, when the Mountain View company decided to rename the product to Product Search, the first move that caused a bad reaction from eBay.
"The profits from the online retail marketplace -- employees used to joke that Ebay was such an intrinsically profitable business that monkeys could run it -- were bound to draw in Google sooner or later. Google charges advertisers by the click; it's a pretty small step to charge only when a transaction is completed, which is Ebay's model," Valleywas said.
The battle is somehow justifiable if we think that Google owns Checkout, the service that is regarded as the best replacement for PayPal, a product owned by eBay. Google has strove to improve the Checkout solution in the recent period, a move that wasn't digested too well by eBay that should be the only competitor in its category.