Saturday, June 16, 2007

Some More Thoughts On Google vs. eBay

While I sit in another airport waiting to get home from Boston my thoughts turn to the feud between Google and eBay. It seems everyone has an opinion. Sellers are worried that sales will decrease because of the moves being made -- this is happening in some case but not across the board -- and Google haters are happy that the drop in traffic from Google to eBay seems less than expected

Google miscalculated how eBay would respond and I did too, honestly I never would have imagined that eBay would have pulled all of their ads and not put them back up. If eBay's traffic doesn't fall drastically this will be a major problem for Google as it will lessen the perceived need for paid ads through Google. Maybe this is why Google purportedly lowered eBay's natural search rankings in response. This battle will continue to play out until cooler heads prevail.

I think eBay over-reacted to a clever PR stunt by Google but I think Google also made a mistake by canceling the party -- maybe Google isn't ready to play with the big boys. They should have continued on with the party and not given into the eBay threat eBay would have still pulled the ads and they would have had a great opportunity to get more press for their stunt. Google blinked first.

eBay is fighting very hard to protect their position with PayPal but it is a losing game. If eBay doesn't do it voluntarily they will be forced to by the government. Google and eBay should come to the table now for the benefit of their users rather than wait until this ends up in the courts. Rajiv Duta, President of PayPal made a comment at the eBay Live Keynote that PayPal accounts currently hold over $2 Billion dollars ready to be spent. Honestly, with numbers like that how long do think it will be before the government gets involved I can hear the whispers of Antitrust coming from Washington right now and I'm sitting in an airport in Providence, Rhode Island right now. eBay for the sake of all involved needs to take care of this before the government decides to regulate it then we all lose.

Of course if Meg Whitman's buddy Mitt Romney is elected President that might help delay the action -- I'm just saying.

Here's a thought OT (off topic) With Meg reaching 10 years at the helm and eBay facing their most daunting issues ever, would Meg leave eBay late this year or early 2008 to join Mitt Romney's presidential campaign? If Mitt is the front runner, I think the possibility becomes remotely feasible. Just speculating here.

Just My 5 Cents

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