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Google and eBay Partner for Click-to-Call Ads
bart_scriv writes "A new joint venture between Google and Ebay will expand the advertising reach of both companies and integrate free phone service with web ads. The partnership also puts rumors of a Yahoo/eBay merger to rest. From the article: 'A deal announced Aug. 28 by eBay and Google now appears to put the kibosh on the notion of an "ehoo" or "Ybay" to challenge Google. Instead, eBay signed up Google to provide Web search advertising outside the U.S. And the pair will cooperate on developing so-called click-to-call ads — which let potential buyers click on a link and talk directly to sellers or their call centers — throughout the world. Tests of the ads in the multiyear agreement will begin in early 2007, though neither side revealed specific terms.'"
from the press release at Google:
Starting in the near future, Skype will offer its users the option to download the Google Toolbar, to which Skype will add a custom button. The companies will also explore interoperability between Skype and Google Talk via open standards to enable text chat and online presence.
So this collaboration seems like more than just click-to-call. The Skype/Google Talk interoperability sounds intriguing, and might give the low-market-share Google Talk some more standing in the IM world; perhaps this is a reaction to Yahoo and Microsoft, who are getting their IM clients to interoperate.
No. Google Checkout is just a credit card processing system. It doesn't let private citizens transfer money among themselves. It doesn't compete with PayPal on all the different levels that PayPal operates.
If anything, Froogle + Google Checkout is a Yahoo! Store killer, but that doesn't sound as sensational when you write tech headlines.
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Do you know what a DDOS attack could do to a call center? A switchboard can't handle nearly the volume that a website can, so you could pretty easily clog the phones at any of these centers forever, pretty much, right? I can't wait to see the prank calls that come out of this -- funny for everyone but the person that gets a zillion calls an hour!
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There's such a misunderstanding of the nature of (most) business competition. It's very much to be expected that two businesses will compete in one market or context and turn around and cooperate in another, and it certainly does not mean that there is no chance for a merger that would end that cooperation. The metaphors of total war notwithstanding, it isn't as if business was about the formation of simple alliances against allied enemies.
Yahoo and Ebay are cooperating in the US market, but Ebay is cooperating with Google in other markets. Microsoft competes with Apple and, to some extent, Mozilla, but goes to some pains to ensure a certain amount of interoperability.
The shorthand version: competition for markets is not the same thing as war. Business-as-war is just a metaphor, and like many metaphors, it doesn't always fit.