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EBay pulls ads from Google over party

Posted : Thu, 14 Jun 2007 21:28:00 GMT
By : Business News Editor
Category : Finance (General)
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BOSTON, June 14 Online auction site eBay has pulled its ads from Google's U.S. search engine site after Google scheduled a party for attendees of eBay's conference in Boston.

At issue are online payment systems -- eBay's PayPal, which handles roughly 80 percent of online transactions -- and Google's Checkout, which launched last year.

Google invited eBay's conference attendees to a party, billing it as a "Let Freedom Ring" event and rally against eBay ' s refusal to allow sellers to advertise that they accept Checkout payments, the Los Angeles Times reported Thursday. "When we heard of their plans to have their party and the way they were marketing it, we were disappointed," said Hani Durzy, spokesman for San Jose-based eBay. Google canceled the party Wednesday.

Deutsche Bank analyst Jeetil Patel estimated eBay gets between 10 percent and 20 percent of its Web traffic from Google, particularly by buying ads to run when Google users type in certain search queries. Google gets millions of dollars annually in ad revenue from eBay. The two also have a revenue-sharing partnership from advertising on eBay's auction sites outside the United States.

Copyright 2007 by UPI

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