Facebook blocks Google’s Ads

February 11, 2011, 6:37 AM UTC

…at least until Google signs on to Facebook’s terms.

Facebook developers often use advertising to monetize their applications and until recently, Facebook has been pretty hands off on what ad companies developers can use.  However, that is all about to change.  Facebook is now requiring ad services to agree to certain restrictions on advertising, which include a commitment to never utilize Facebook user data, reports Network Effect.

There is at least one major network currently omitted from Facebook’s list of app advertising providers.  Google (GOOG) still has a chance to sign up but they’d lose their precious analytics capabilities, which both creep people out but also let Google serve up better ads.  Since Google’s ads are pretty ubiquitous with developers, there are likely a lot of people who will scramble to find a different ad network.

I’m not sure what choice Google has in the matter at this point.  They either miss out on app ads in Facebook or they sign Facebook’s terms.

More on Fortune.com: