The official wording states that the move is "due to the substantial economic burden caused by extensive abuse". With active APIs application developers could use the service in their web apps or native apps to offer Google's free translator services to users. With initially limiting the APIs and then shutting them down completely, Google might think of protecting its own Android platform.
Either too many non-Google (read Apple) smartphones kept the services busy or just maybe El Goog is trying to make it all available for its own family members. For what it's worth, Microsoft's Bing APIs are still free for the moment so developers can slowly turn to Redmond's offering in their apps.
Source: Google Code
Via: TiPb
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