Google Engineer Matt Cutts has posted information on how to report paid links. According to Matt, Google already has algorithms for detecting paid links, but wants to make it easier for webmasters to report paid-link sites.
Some bloggers, like Jason Calacanis, are ecstatic with the news that Google is actively fighting paid link sites like PayPerPost. Others interpret this as a sign of weakness, as Andy Beal writes in Google Wants You to Disclose the Paid Links it Can’t Find.
I checked and found no response to this issue from the PayPerPost blog. Although I did notice they have altered the rates advertisers are paying for links from blogs with a Google PageRank over 6, or an Alexa rank over 9,999.
Suffice it to say, the verification that Google is actively working to fight paid link sites is proof positive that Google sees these businesses as destructive to the integrity and value of search. If enough paid link sites continue to degrade the value of PageRank, Google search will become ineffective and the internet will suffer.