Tech Shout!

Leading online auction website eBay has pulled its advertising from Google Inc’s AdWords network in the U.S., stated an eBay spokes on Wednesday.

An industry analyst mentioned that the association between the search giant and eBay, which have contending online pay systems, is becoming more and cold. In an effort to find the most efficient forms of marketing itself, eBay chose to go ahead and discontinue the ads, said the San Jose-headquartered company.

eBay spokesman Hani Durzy said, “This is part of an ongoing experiment to look at how we market across all media channels,” said.

Technology trade publication Computerworld was the first one to reprt about this step. Computerworld quoted a source who stated that eBay was responding to Google’s decision to hold a party starting at the same time as an eBay conference for merchants who sell on its site.

On Wednesday, Google canceled the event in response to eBay, and Durzy admitted that eBay was let down that Google had planned it.

Google’s Checkout Freedom Party was part of an effort to lobby eBay to accept its online payment system dubbed Checkout, which is a rival to eBay’s PayPal.

“We don’t view that kind of activity as an appropriate activity for one partner to do to another,” Durzy added.

Google reported that it canceled the party, Tom Oliveri, a Google product marketing manager, wrote: “We at Google agreed that it was better for us not to feature this event during the Ebay Live conference.”

While not commenting on the tensions between the companies, he added: “Ebay Live attendees have plenty of activities to keep them busy this week in Boston, and we did not want to detract from that activity.”

Martin Pyykkonen, an analyst with Global Crown Capital said that though the relationship between eBay and Google has been deteriorating for a while, he thinks that because of Google’s reach to prospective eBay customers, the auctioneer will have to rethink its decision to pull ads.

Pyykkonen said, “I don’t see how eBay could stay away long.”