Here is Evan Williams denying that they have joined the Google Friend Connect Party and competing against Facebook. It seems they are working closely with both.

http://twitter.com/ev/status/1059144975

Sorry, but I still don't get what it means.

Does this mean they've found a business model? Or a potential one? Why is this important?

Do you know what's Google Connect? http://www.google.com/friendconnect/admin/

It's news because it means Twitter is adhering to a Google-promoted standard, and because this standard is competition of Facebook Connect. http://developers.facebook.com/news.php?blog=1&story=108

Google vs Facebook is the new battle.

I don't buy that. How is this going to increase googles revenue? How is it going to make facebook money?

Sounds like a lot of politics to me.

It's all about centralizing data. It allows Google/FB to aggregate what you do on the web, which is useful to both of them for different reasons.

Yeah, I did't get it either so I asked Biz: http://twitter.com/gsiener/status/1058765109

It's important because, as a user, I want some of the sites I use to be aware of each other and work together.