PayPal, eBay sue Google over Wallet mobile phone

PayPal and eBay filed a lawsuit in a California state court charging that the Internet giant tapped into trade secrets for its newly released Google Wallet. Google did not immediately respond to the allegations.

PayPal spent three years trying to work out a deal in which it would handle payments for Android smartphones, only to see Google scuttle the talks and hire its lead negotiator Osama Bedier, according to court documents. Bedier worked at eBay-owned online financial services unit as vice president of platform, mobile, and new ventures until being hired in January by Google.

Google Wallet will initially work with Google’s Nexus S 4G smartphone from Sprint, third-largest US wireless provider, and will eventually be expanded to other phones equipped with near field communication (NFC) technology.

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