Google Axed $249/Month Subscribers Over Open Source Tool They Built OAuth For
Last week I watched a fascinating corporate self-own unfold. Google started mass-suspending their own Ultra subscribers—people paying $249.99 per month—for using an open source tool that leverages Google's own OAuth system.
The tool? OpenClaw, built by Peter Steinberger (who OpenAI just hired, more on that later). It's a desktop agent framework that lets developers integrate multiple AI providers through their official APIs. Nothing sketchy. Just OAuth tokens doing exactly what OAuth tokens were designed to do.
The $249 Betrayal
Here's what happened:
- Ultra subscribers used OpenClaw to access Gemini 2.5 Pro via legitimate OAuth
- Google detected "unusual traffic patterns" (translation: automated usage)
- Suspended accounts immediately. No warnings. No appeals process.
- Blocked access to Gmail, Workspace, Gemini CLI, everything
- Kept charging the monthly fees
Google's support emails cite violations for using credentials in "non-Antigravity products." But here's the kicker—OAuth was literally designed by Google engineers for third-party integrations.
<> "This is draconian," Steinberger called Google's enforcement, warning developers to avoid their platform entirely./>
He's not wrong. Compare this to Anthropic, who updated their terms in February 2026 but actually communicated with users. Their engineer Thariq Shihipar explained the "token arbitrage" problem on social media. Professional. Transparent.
Google? Radio silence. Zero tolerance policy with zero human judgment.
The Vendor Lock-In Gambit
This isn't about terms of service violations. It's about protecting subsidized pricing models from third-party efficiency.
Think about it:
1. Google sells Ultra subscriptions at $249/month
2. Users build workflows that actually use what they paid for
3. Google panics about compute costs and usage patterns
4. Solution: Ban the tools that make their service useful
Meanwhile, OpenAI hired Steinberger and Sam Altman publicly praised his agent work. They're embracing the exact workflows Google is punishing.
The Technical Absurdity
The suspended accounts lose access to:
- Gemini 2.5 Pro quotas they paid for
- Antigravity backend services
- Cloud Code Private API
- Basic Google services like Gmail
For using OAuth tokens. OAuth tokens that Google issued.
Developers are now scrambling to competitors like MiniMax and Kimi, who actively promote OpenClaw compatibility. The 758 points and 647 comments on Hacker News signal serious developer backlash.
<> "We're seeing traffic shifts as developers abandon Google's ecosystem," noted IntraMind's analysis of the fallout./>
The Bigger Picture
This follows Anthropic's similar crackdown in February, but Google's execution is remarkably tone-deaf. They're:
- Punishing paying customers
- Blocking legitimate use cases
- Continuing to bill suspended accounts
- Refusing all appeals
- Providing zero communication
It's vendor lock-in disguised as terms enforcement. The AI compute costs are real, but alienating your highest-paying users isn't the solution.
The OpenAI Win
The real winner? OpenAI. They hired the OpenClaw creator, don't ban third-party integrations, and just inherited a bunch of frustrated Google Ultra subscribers.
Classic Big Tech move: solve a business problem by making your product worse for customers.
My Bet: Google will quietly reverse some suspensions in 2-3 months, but the developer trust damage is permanent. Steinberger will drop Google support from OpenClaw, and we'll see more AI companies follow OpenAI's "embrace the ecosystem" approach rather than Google's scorched earth policy.
