eBay Stares Down Google And Wins

Not much commentary is needed on this one. Here’s what happened:

1. eBay doesn’t allow merchants to use Google Checkout to settle eBay transactions. Google invited eBay online sellers attending eBay Live! in Boston this week to a party that they called the Google Checkout Freedom Party.
2. eBay decides to pull all U.S. advertising on Google.

3. Google backs down, cancels the party.

4. Google looks like a complete wimp; eBay looks like a bully.

The party appeared to be nothing more than Google poking a little fun at eBay’s restrictive policies. eBay hit back with the biggest weapon they had, suggesting that tension between the companies goes very deep.