Google to Launch Google Auctions Service?

Officials in Arizona are expected to announce that Google Inc. will open a major new operation in the Phoenix area.

An announcement, scheduled for Wednesday by state and local leaders, regards a major company locating substantial operations in the state.

Unnamed sources said that search engine titan Google (NASDAQ: GOOG) of Mountain View is the company in question and that its Phoenix-area plans will likely include operations related to online auctions and expanded Internet and technology services.

You have to wonder how this will effect eBay AdWords bidding strategies if a rivalry between them heats up. eBay is one of the most frequently searched terms, and eBay has one of the largest AdWords spends.

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Google Inc. is locating 600 new engineering and support jobs in the Phoenix area, the Internet search engine giant said Wednesday.

The Mountain View-based company said it is searching for a site for the new Arizona operations and had not yet determined where it would be located.

The company announced its Arizona expansion at an Arizona State Capitol event attended by Phoenix Mayor Phil Gordon, Arizona State University president Michael Crow, Gov. Janet Napolitano, Scottsdale Mayor Mary Manross and representatives from Chandler, Tempe and Mesa.

Google (NASDAQ:GOOG) is expected to land in one of those locations.

Google senior director Douglas Merrill said the company is not looking for incentives from local officials and would not spark a bidding war for its operations.

Merrill cited Arizona's universities and quality of life in picking the area for the new operations.

Google is looking to expand its technology reach beyond its widely popular search engine. That expansion includes competing with other technology and Internet firms such as eBay (NASDAQ: EBAY), Yahoo Inc. (NASDAQ: YHOO) and Microsoft (NASDAQ: MSFT).

Google recently announced a partnership with Sun Microsystems Inc. (NASDAQ: SUNW) aimed at competing with Microsoft on the software and operating systems front.