Ebay throws a tantrum
Media reports that Ebay threw a bit of a tantrum when Google planned to hold a Google Checkout party during the same week as an Ebay Live event. Ebay doesn’t like Google checkout and doesn’t allow its use on its auction site, preferring instead to force buyers and sellers to use the Paypal service that it owns. Paypal, with a revenue of over $1.4 billion a year, is growing faster than the Ebay auction site and is tipped to become a bigger money spinner than Ebay auction site itself.
Not wanting attention to be diverted to its competitor, Ebay pulled its ads on Google’s US site. A really mature response and one that is likely to promote constructive collaboration between the two companies, don’t you think? Well, Google blinked first and cancelled the party, although Ebay is apparently yet to restore its ads.
It’s a funny little spat, but it shows Ebay’s determination to push its Paypal service no matter what. Don’t get me wrong, Paypal is convenient and easy to use. It is free for buyers. But sellers have to pay a fee. And those fees add up, pushing the asking prices higher, which isn’t so good for buyers.
I haven’t used Google Checkout, but a bit of competition is always healthy, even if it does occasionally lead to a giant company behaving like a temperamental child.
