Bad news for lots of site owners. It looks like the rumours that Google is penalizing sites for selling links are true:
Last week, I noticed the Stanford Daily had dropped from (PR9) when I wrote the above in April to PR7 today. That’s a huge drop that has no apparent reason to happen. Some others were also reporting PageRank drops. So I pinged Google, and they confirmed that PageRank scores are being lowered for some sites that sell links.
In addition, Google said that some sites that are selling links may indeed end up being dropped from its search engine or have penalties attached to prevent them from ranking well.
Source: Search Engine Land
It’s of course their search engine and Google has every right to ban or kick sites that sell links but it’s a pretty lame move IMO. Doesn’t really fit into the “do no evil” philosophy if you ask me.