Link building is core to the search giant’s algorithm, if a site that is highly regarded in Google (indicated by having a good pagerank PR4+) links to a site it conveys some of its authority or "link juice".

 

The good old day’s webmasters could influence Google by merely exchanging links, trading between sites. That was pretty much overcome some time ago, but webmasters had moved on as well to amongst other things buying their links. The price of these links varies from a few dollars a month to $100's and even $1000's a month.

 

So Google’s suggestions to effectively null the "link juice" will not only make buyers very cautious but sellers could effectively start loosing significant income. In fairness since the announcement Google has gone on to declare that it can identify 9 out of 10 bought links anyway so doesn't need webmasters support to overcome the practice.

 

Whilst I’m sure Google may well be able to identify some bought links, its claims of 9 out of 10 might be a little ambitious. That said the fact that Google has registered it is aware of the practice yet again serves its purpose; to sabre rattle, thereby encouraging webmasters to market their sites in other ways.