In a move that's garnering the ire of many developers, Google has announced that beginning July 1, 2006, use of the AdWords API will no longer be free. The AdWords API lets third-party developers create apps that interact directly with the AdWords server. According to the new terms of service, the previous free quota-based system will be replaced by a usage fee structure in which $0.25 buys 1,000 "quota units." Different API functions cost different unit amounts, most in the 10-50 range. Unsurprisingly, AdWords API users are up in arms over the new fee structure. Over at Google Groups user goran77 wrote "Correct me if I am wrong, but I heard that [Google's] Adwords Editor does not consume quota, which means it's usage will not cost (in terms of quota). Now, if usage of my program uses 1.000.000 per month (250$) or even more for heavy users, how can I compete with Adwords Editor?" Another developer complains that the same service that currently costs him nothing will, come July, cost $6,250 per month, effectively putting him out of business. Like them, I think this is a daft move on Google's part. AdSense is Google's cash cow and every third-party tool that makes it easier for advertisers to use is another chunk of change for Google. Charging developers to make those tools (and advertisers to use them) will serve only to scare them off.