Exclusive: Google suspends some business with Huawei after Trump blacklist - source

Authored by reuters.com and submitted by crushed_oreos
image for Exclusive: Google suspends some business with Huawei after Trump blacklist - source

NEW YORK (Reuters) - Alphabet Inc’s Google has suspended business with Huawei that requires the transfer of hardware, software and technical services except those publicly available via open source licensing, a source familiar with the matter told Reuters on Sunday, in a blow to the Chinese technology company that the U.S. government has sought to blacklist around the world.

A Google spokesperson said the company is “complying with the order and reviewing the implications” without giving details.

The move could hobble Huawei’s smartphone business outside China as the tech giant will immediately lose access to updates to Google’s Android operating system. Future versions of Huawei smartphones that run on Android will also lose access to popular services including the Google Play Store and Gmail and YouTube apps.

“Huawei will only be able to use the public version of Android and will not be able to get access to proprietary apps and services from Google,” the source said.

The Trump administration on Thursday added Huawei Technologies Co Ltd to a trade blacklist, immediately enacting restrictions that will make it extremely difficult for the company to do business with U.S. counterparts.

On Friday the U.S. Commerce Department said it was considering scaling back restrictions on Huawei to “prevent the interruption of existing network operations and equipment.” It was not immediately clear on Sunday whether Huawei’s access to mobile software would be affected.

The extent to which Huawei will be hurt by the U.S. government’s blacklist is not yet known as its global supply chain assesses the impact. Chip experts have questioned Huawei’s ability to continue to operate without U.S. help.

Details of the specific services affected by the suspension were still being discussed internally at Google, according to the source. Huawei attorneys are also studying the impact of the blacklist, a Huawei spokesman said on Friday. Huawei was not immediately reachable for further comment.

FILE PHOTO: Visitors walk past Huawei's booth during Mobile World Congress in Barcelona, Spain, February 27, 2017. REUTERS/Eric Gaillard/File Photo

Representatives of the U.S. Commerce Department did not immediately comment.

Huawei will continue to have access to the version of the Android operating system available through the open source license, known as Android Open Source Project (AOSP), that is available for free to anyone who wishes to use it. There are about 2.5 billion active Android devices worldwide, according to Google.

But Google will stop providing Huawei with access, technical support and collaboration involving its proprietary apps and services going forward, the source said.

Huawei has said it has spent the last few years preparing a contingency plan by developing its own technology in case it is blocked from using Android. Some of this technology is already being used in products sold in China, the company has said.

In an interview with Reuters in March, Eric Xu, rotating chairman of Huawei, struck a defiant note in anticipation of retaliatory actions by U.S. companies. “No matter what happens, the Android Community does not have any legal right to block any company from accessing its open-source license,” he said.

Popular Google apps such as Gmail, YouTube and the Chrome browser that are available through Google’s Play Store will disappear from future Huawei handsets as those services are not covered by the open source license and require a commercial agreement with Google.

But users of existing Huawei devices who have access to the Google Play Store will still be able to download app updates provided by Google. Apps such as Gmail are updated through the store, unlike operating system updates which are typically handled by phone manufacturers and telecoms carriers, which the blacklist could affect, the source said.

FILE PHOTO: An illuminated Google logo is seen inside an office building in Zurich, Switzerland December 5, 2018. REUTERS/Arnd Wiegmann

The impact is expected to be minimal in the Chinese market. Most Google mobile apps are banned in China, where alternatives are offered by domestic competitors such as Tencent and Baidu.

Huawei’s European business, its second-biggest market, could be hit as Huawei licenses these services from Google in Europe.

“Having those apps is critical for smartphone makers to stay competitive in regions like Europe,” said Geoff Blaber, vice president of research at CCS Insight.

Rhed0x on May 19th, 2019 at 20:32 UTC »

This is huge for Europe. A lot of my friends use Huawei phones because of the good prices.

archon810 on May 19th, 2019 at 18:59 UTC »

CNBC March 15, 2019: "Huawei built software for smartphones and laptops in case it can’t use Microsoft or Google products"

We don’t expect to use them and to be honest, we don’t want to use them," the spokesperson said.

Well, this didn't age well.

RIP

P.S. Is www.apkmirror.com going to become Huawei users' new best friend?

crushed_oreos on May 19th, 2019 at 17:57 UTC »

Key Quotes:

Huawei will immediately lose access to updates to the Android operating system, and the next version of its smartphones outside of China will also lose access to popular applications and services including the Google Play Store and Gmail app.

Google will stop providing any technical support and collaboration for Android and Google services to Huawei going forward.