http://www.google.com/ads/affiliatenetwork/index.html
This has been on the agenda for years and, for the moment, will not impact the market too significantly. Previous attempts have been launched (Google checkout, froogle), which caused an initial stir but didn't materialise into the 'ValueClick killer' (http://www.revenews.com/samharrelson/google-launches-affiliate-network/)
Obviously, the acquisition of DoubleClick who own affiliate network 'Performics' (Top 3 network in the US) has enabled Google to now distribute a ready-made product and to a certain extent not own the servicing, which is where issues can lie.
Here's some more info but please get in touch if you need any more information and we'd be happy discuss.
http://adwords.blogspot.com/2008/06/we-are-retiring-pay-per-action-beta.html
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