News of Google's test caused eBay's share to fall by 4 per cent.

Known as Google Base, the service would let internet users submit information about a wide range of personal items, free of charge, to publicly searchable database maintained by Google.

The information could include things like a listing of your used car for sale or a database of protein structures, according to Google's test site. The website was not publicly available, but screen shots were posted on blog sites. While refusing to comment on future services, Google said: "We are testing new ways for content owners to easily send their content to Google.

By collecting personal listings and making them generally searchable without charging a fee, Google could pose a direct challenge to eBay, whose business is founded on the millions of listings it attracts from sellers. Ebay users pay an average of 7% of the value of sales they conduct through the auction site.

Many other companies, from online job sites to apartment rental services and Yellow Pages companies, also rely on listings and classified advertisements that could potentially fall within the range of Google Base.

Ebay and Google have appeared to be increasingly set on a collision course in recent months, as each company has moved further into territory occupied by the other. Ebay for instance has invested heavily in its own search engine, known as Magellan, to make it easier for buyers to pick their way through its massive database of items for sale.

Both companies have also rushed to add communications to their range of services, with eBay buying Skipe Internet phone service and Google creating its own instant messaging and voice service, Google Talk. Google's potential move into Ebay's markets has already led to tension between the two this year. After it emerged that the search company was looking into launching its own online payment system, Google quickly said it was not planning to a service that would directly compete with PayPal, which is owned by EBay. EBay is one of the largest advertisers on Google-pay-per-click.

By Richard Waters
FT