This week Google have back tracked by cancelling their “let the freedom ring” event that was planned to be held in Boston on the same day that eBay where holding the eBay Live! conference in the same city.

The Google event was published on the Google checkout blog and in response it has been reported by the telegraph that an eBay spokesman said that eBay “pulled our Google ads in the US and we are continuing to evaluate other market channels.”

Once eBay had removed its Google advertising funding Tom Oliveri of Google Checkout Team published a blog stating the cancelation of the “let the freedom ring” event, stating that “After speaking with officials at eBay, we at Google agreed that it was better for us not to feature this event during the eBay Live! conference.”.

eBay have not indicated whether the US advertising is going to be reinstated after Google announced the cancellation of their event.

What impact does this have for other advertisers using Google AdWords in the US with the reduced competition? Also what effect will this have for sellers on eBay.com? This will be a topic that is well worth watching to see if it sets any presidents for how Google will compete with its advertisers in the future.