eBay and Google offer rival payment services PayPal and Checkout. The competition between the companies became even hotter when Google announced a 'Checkout Freedom Party' right at the time that eBay had scheduled its own party.
That move was not a friendly one and was very disappointing for eBay. But Google it doing everything possible to win the market and to expand its revenues.
Google started its Checkout system last summer and was offering services only in US. Just in May it expanded the service in UK. Meanwhile eBay has been offering the service long ago and is well skilled in it.
eBay was not accepting payments from Checkout, because it didn't find Google's system well fraud protected. But eBay itself has a rich experience in payment market, so it is quite logical it doesn't accept Checkout.
So the next move by eBay in response to the party hinder was that it pulled out its ads from Google's AdWords program that analyses web pages and offers ads for the current web page content.
Anyway, after eBay's announcement to get out of AdWords, Google canceled its Checkout party. "EBay Live attendees have plenty of activities to keep them busy this week in Boston, and we did not want to detract from that activity," the Google blog said. "After speaking with officials at eBay, we at Google agreed that it was better for us not to feature this event during the eBay Live conference."
Revenue from eBay is the 1 percent of whole AdWords program, so Google will not loose that much from this battle. But the 6 percent of eBay's traffic is driven by AdWords, so this should make eBay think twice. By Ruzan Harutyunyan For HULIQ
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