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 US government has sought to
blacklist around the world.
Holders of current Huawei smartphones with Google apps,
however, will continue to be able to use and download app
updates provided by Google, a Google spokesperson said,
confirming earlier reporting by Reuters.
"We are complying with the order and reviewing the
implications," the Google spokesperson said.
"For users of our services, Google Play and the security
protections from Google Play Protect will continue to function
on existing Huawei devices," the spokesperson said, without
giving further details.
The suspension 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 US 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 help from the United
States.
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.
Chipmakers including Intel Corp, Qualcomm Inc
, Xilinx Inc and Broadcom Inc have
told their employees they will not supply critical software and
components to Huawei until further notice, Bloomberg reported https://bloom.bg/2VLT5QK
late on Sunday, citing people familiar with the matter.
Intel, Qualcomm, Xilinx and Broadcom did not immediately
respond to requests for comments on the Bloomberg report.
Representatives of the U.S. Commerce Department did not
immediately comment.
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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.
However, 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.
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.
In Beijing, foreign ministry spokesman Lu Kang said the
ministry had noticed the report and would look into it and pay
attention to developments.
"At the same time, China supports Chinese companies to use
legal weapons to defend their legitimate rights," he added, but
did not elaborate.
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, CCS Insight.
Reuters