The bill has arrived for Google's protest party at last week's eBay conference. And even though the party was canceled, the cost is much higher than Google probably expected for its poke at a rival Internet powerhouse.
In apparent retaliation for the planned intrusion on its annual pageant, eBay abruptly pulled all U.S. advertising for its online auction and shopping sites from appearing with Google's search results. Having made its point, eBay (EBAY) is ready now to resume paying for Google (GOOG) search ads—only at lower levels than before.
But eBay says the reason for scaling back goes beyond displeasure at Google's ploy, which was meant to protest the exclusion of Google's Checkout service from the list of accepted payment providers on eBay's sites. During the 10 days that eBay did not place ads for its sellers' products next to Google's search results, traffic on some eBay sites actually increased, says eBay spokesman Hani Durzy.
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