Ebay’s Paypal vs. Google Checkout

This week’s publication of Marketing News contains an interesting article on Paypal versus Google Checkout.

This past June, eBay pulled all its keyword ads from Google’s U.S. site in response to a major Google blunder. What blunder? The Google Checkout team planned a party during eBay’s annual “eBay Live” event in the same city. Google called its party “Let Freedom Ring” – a reference to the fact that eBay’s Paypal does not allow Google Checkout as a payment method.

After eBay pulled its advertising, Google canceled the party but eBay has yet to relent its boycott. That’s bad for Google because eBay spends tens of millions of dollars a year with Google.

Lesson for the day: Don’t try to take screw over one of your biggest clients.