Google intentionally blocking PayPal from App Engine?

Google intentionally blocking PayPal from App Engine?

Summary: After anonymously bashing PayPal in Australia, it's not a huge surprise that Google was caught intentionally blocking AppEngine users from using PayPal too. Could it have been a innocent mistake?

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After anonymously bashing PayPal in Australia, it's not a huge surprise that Google was caught intentionally blocking AppEngine users from using PayPal too. Could it have been a innocent mistake? Sure, but the circumstance and timing are extremely suspicious.

First, Google was outed after sending an anonymous letter to the Australian Competition and Consumer Commission explaining why PayPal isn't playing fair. Now, developers are complaining that they can't get PayPal to work with their applications hosted on Google's App Engine. Even after a clever work-around was posted, that stopped working too. It certainly seems like someone was making sure PayPal wasn't going to work on App Engine.

A Google employee in the discussion group commented on the situation calling it a "bug" that stems from PayPal being accidentally listed as a phishing site. This is also strange since Google's own anti-phishing tool gives PayPal the thumbs up. The "bug" is now apparently fixed, and developers should be able to use PayPal once again.

If I was Google, and wanted to play fair, I would simply put in my terms of service something that says the following:

Payment Services not permitted on Google App Engine: PayPal, AlertPay.com, anypay.com...

Does that look familiar? Well, it should. Check out eBay's official policy on accepted payment methods. They explicitly state that sellers cannot choose to accept payment using Google Checkout -- likely the root of the escalating tension between these two companies.

What do you think? Was Google intentionally blocking PayPal from their App Engine? Should they put a clause in their terms of service to prohibit PayPal from being used?

Topics: Banking, Enterprise Software, Google, Security

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21 comments
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  • Dependency on corporate wars

    Seems to me that I will never use Google Apps, really, I don't want depend on someones corporate wars.

    -----------
    ZDNet don't want to work with IE8.
    mike@...
  • RE: Google intentionally blocking PayPal from App Engine?

    I seriously doubt they were doing it deliberately, it's not like they could have done it without people realising.

    And as for anonymously bashing ebay, they were arguing against ebay cutting off other payment methods (hardly surprising). They didnt send an anonymous letter, the people making the decision knew who it was from, it was just anonymous in the public releases.

    You're being a tiny bit sensationalist
    wqroweir
  • They are acting like a bunch of 3 year olds...

    ...but that is pretty much the MO for most of the corporate world anyway.
    IT_Guy_z
  • Business As Usual

    When Google is running Google Checkout, adding to their bottom line, increasing profit margins, and in direct competition with PayPal. Why should they let developers using their tools, ie. google apps, accept money through the competitors site? This is business as usual. God Bless the USA. If the developers want to use paypal in their software, Then I guess they should use Ebay apps... OOPS!
    Thats right, no such thing.

    Furthermore, why is okay for ebay, ie. paypal, to block google checkout, but not google to block paypal? Google Owns the rights to Google Apps, they say who, when, how, and where you can play when using their product.

    After all, no one complains that the Ford parts won't fit on a Chevy.
    steve@...
    • better analogy

      I own a shopping mall. I also own a bank. I forbid the stores in my mall to accept credit cards issued by banks other than my own.

      This wouldn't be unethical, but it would be stupid. Stores would rent space from a mall owner who didn't restrict the forms of payment that they could accept.

      The difference is that shopping malls operate in a very competitive space. Web shopping platforms do not.

      In general, monopolies and near-monopolies benefit the inventor and the entrepreneur, at the expense of the consumer. We tolerate them because we believe that the short-term disadvantages to the consumer are outweighed by the long-term advantages that the consumer gains in a system that enriches innovators.

      But I do expect any brand of gasoline to work in any make of car, regardless of which oil company GM owns stock in.
      jenny.howard@...
    • Business as Usual

      Who says nobody complains when Ford parts don't fit Chevys? We do, then either figure out how to make them fit or find something else that does. It's the American Way! It's Google's App, Google can control it.
      bstradingco@...
  • PayPay

    I think everyone should block PayPay for its monopolistic policies. bad service, high cost, and we'd all be better off.
    aljhill@...
    • Huh???

      someone wrote:I think everyone should block PayPay for its monopolistic policies. bad service, high cost, and we'd all be better off.

      Huh?? For millions of us who do not have the time to build a secure website and get (pay for) SSL certificates, for millions of us who might not qualify for a bank-based merchant service account, for millions of us who do not want to invest in the hard and software to process a few credit card sales, for millions of us who don't employ an accountant full time.....PayPal is a godsend.
      psion@...
      • PayPal is a godsend?

        Well wait until paypal freezes your checking account (for those that can't get a credit card & use a debit card). Then talk about how much a godsend they are. Its not only possible but it happens often and you cannot do anything about it without legal proceedings. Can you afford that?
        Enorton42@...
      • I concur

        Paypal has enabled the American Dream for many people that otherwise could not do business on a pro level versus all the big fish out there.
        onedavester@...
  • Agreed

    Business as Usual said it all!
    BrewIT
  • Typical "Walled garden" scenerio

    eBay forbids the use of Google checkouts in favor of its OWN PayPal. Google forbids the use of PayPal by users of Google Apps.

    Two corporate fiefdoms wanting to own the walled garden.

    Do I have a problem with that, "NO"

    Do I have to use either companies services: "NO"

    Hey, its capitalism. Consumers can decide for themselves if they want to support proprietary "Walled Gardens"; or take their business elsewhere.
    fatman65535
    • Re: Walled Garden

      There's a codicil here.
      This isn't a competition. This is two major monopolists, each driving the other out of business as fast as they can, reducing choice.
      You can't "Take your business elsewhere" when there is a near or actual monopoly.
      That's why we have laws against these anticompetitive actions.
      Look for lawsuits.
      mykmlr@...
  • RE: Google intentionally blocking PayPal from App Engine?

    Good Move Google! Personally after having problems with paypal I think this is a fantastic move on googles part. I am not the only one that's had problems. See this web site to read more about paypals antics. http://www.aboutpaypal.org/
    Enorton42@...
  • RE: Google intentionally blocking PayPal from App Engine?

    Be upfront. Ebay wants to protect paypal, Google should protect Googlepay. Nothing wrong with protecting your turf. Just don't play hide the ball because it wastes people's time.
    pcone31@...
  • RE: Google intentionally blocking PayPal from App Engine?

    Pay pal always wants control ..ha ha this is hilarious and pay pal deserves it and a little more...How does it feel? paypal..?'''
    keyb23@...
  • Dr Brin and Mr Schmidt

    Google seems to be a real Jekyll and Hyde outfit.

    Originally coming up with a world beating search engine and following it up with some really cool apps, but then Sergey Brin drinks the evil potion, mutates into Eric Schmidt and Google gets caught abusing user data and plotting the kind of monopolistic practices that would make Ballmer blush.

    I'd love to have nothing tgop do this this lot but where would I get my ad revenue from? plus I'd really miss Google Earth. :/
    RodinUK
  • RE: Google intentionally blocking PayPal from App Engine?

    Google is great as is. Anymore we will have clustered search engine like I say, many recipes confuses the cook.
    I thank you
    Firozali A. Mulla MBA PhD
    P.O.Box 6044
    Dar-Es-Salaam
    Tanzania
    East Africa
    famulla
  • RE: Google intentionally blocking PayPal from App Engine?

    Typical of the Google gaggle - a bunch of amateurs that hit it with one algorithm and haven't a clue how to do anything else. Not only do their Google doc apps suck, but everything else they touch does likewise.

    JMO
    No_Ax_To__Grind
  • Garett Rogers Getting Bribe from PayPal ?

    Garett Rogers Getting Bribe from PayPal ?

    is it true is he really getting Bribe from PayPal ?

    well
    if any one reading this headline they will Thought it may be True as Headline is clearly saying that but WAIT there is a '?' Question mark in the Last .

    so what i actually want .

    am i sayin Garett Rogers Getting Bribe from PayPal

    or am i asking "IS" he getting bribe

    i m JUST Sensitizing my Comments Just like Garett You do it .

    i am ( or was) a big fan of ur Blog (though i never comment earlier - its my 1st comment in Cnet Blog)

    but i did not Understand why u became a Sensationalist and biased like Paparazzi or Page 3 / page 6 type gossip newspaper ????

    earlier ur Blog was informative .now its
    became Biased

    few fact that ur became biased and Sensationalist

    as Zdnet Blog user "wqroweir" says

    "And as for anonymously bashing ebay, they were arguing against ebay cutting off other payment methods (hardly surprising). They didnt send an anonymous letter, the people making the decision knew who it was from, it was just anonymous in the public releases."

    so Google not bashing Ebay anonymously . u r Manipulating the meaning Garett.

    it is right that PayPal can Block Google but Google cant Block PayPal. is PayPal doing fairPlay by blocking Google ?? didu protest ( the same way u r now Protesting) when PayPal Block Google if not then why u r complaing now?? . u should not forget that u r in Technology Blog not in a cheap Gossip Newspape.

    becoming Biased and Sensationalist Blogger u may earn more money as u may get more casual reader . but u will losse old loyal readers .


    really Garett is really money makes every body corrupted ???

    ps. u r talking about FairPlay, can i expect a FairPlay from u . can i see my comment uneditedly in ur Blog as i did not use any slang etc .


    r u really believe in FairPlay ( plz come back - i like the old Garett )

    - UrbLege
    UrbLege