moTi - 1:47 am on Jul 21, 2011 (gmt 0)
well said, mhansen.
webmasters know the double-dependency too well. google sends the visitors, google sends the checks. most popular search engine and biggest advertising network in one company is the underlying issue here. they own the gateway and they own the monetization. and naturally they are abusing their monopolistic market position more and more - with tools like dumping and cross-subsidization. the op has mentioned one of the many excesses. with that kind of setup, the potential to squeeze customers and middle men is almost limitless.
for me, there is only one consequence: break up the company into at least two independent businesses - namely search and advertising. but if that's already a solution, i don't know.