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



 FILE PHOTO: Visitors walk passes Huawei's booth during the Mobile World Congress in Barcelona
FILE PHOTO: Visitors walk past Huawei's booth during Mobile World Congress in Barcelona, ​​Spain, February 27, 2017. REUTERS / Eric Gaillard / File Photo 19659003] May 20, 2019

By Angela Moon

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 through open source licensing, a Source familiar with the matter customs Reuters on Sunday, in the Chinese technology company at the US Government has sought to blacklist around the world.

Holders of current Huawei smartphones with Google apps, however, will continue to use and download app updates provided by Google, a Google spokesperson said, confirming earlier reporting by Reuters. 1

9659007] "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 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 will immediately lose access to updates to Google's Android operating system. Future versions of Huawei smartphones running on Android will also have access to popular services, including the Google Play Store and Gmail and YouTube apps. [HuaweiwillonlybeabletousethepublicversionofAndroidandwillnotbeabletogetaccesstoproprietaryappsandservicesfromGoogle”saidthesourcesaid

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 US 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 or not 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 known as its global supply chain assessments. 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 available for further comment.

Chipmakers including Intel Corp., Qualcomm Inc., Xilinx Inc. and Broadcom Inc. have their employees 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 US 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 the Android Open Source Project (AOSP), which is available 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.

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.A. 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.

download app updates provided by Google. Apps such as Gmail are updated through the large, 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.

Huawei's European business, its second-biggest market, could be found as Huawei licenses these services from Google in Europe. [19659004] “Having those apps is critical for smartphone makers to stay competitive in regions like Europe,” said Geoff Blaber, vice president of research, CCS Insight.

(Reporting by Angela Moon; Additional reporting by Georgina Prodhan in London, and David Shepardson and Karen Freifeld in Washington; Editing by Kenneth Li, Daniel Wallis, Sandra Maler and Sherry Jacob-Phillips)


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