Call it Fear of competition or a a self-destruction move, eBay is banning sellers who are requesting payment through Google Checkout.

eBay’s updated payment policy (updated after the launch of Google’s Checkout) states that
“eBay will consider the following factors, among others, in making its determination:

“Whether the payment service has a substantial historical track record of providing safe and reliable financial and/or banking related services (new services without such a track record generally cannot be promoted on eBay)”
“We don’t know what it (Google Checkout) will look like, we haven’t seen it. If it is introduced as a beta test, it probably doesn’t meet our definition of having a historical track record,” Durzy(eBay’s spokesperson) is quoted as saying.

Google’s reply “Google Checkout is not a beta product. Google has a long history in billing and payments for AdWords and for premium services, such as Google Video.”
Well, Bloodbath has just begun.

What does this mean for eBay (and its users):
Bad Publicity (Bloggers are going to hit eBay very badly) / Sellers might start looking for options (especially those are on Adwords program).

What about Google?
This is just the beginning of Bloodbath that Google will face in future (MS is still working on Vista). Google needs to build its own marketplace too (Why is Google Base not taking up in a big way?

Related Articles: Google Checkout – Paypal’s new Pal? | Google – The Road Ahead

Filed Under: ebay; Google