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.
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 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 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.
US ban on Huawei to affect Indian business
With US Internet giant Google’s decision to sever ties with Chinese telecom company Huawei, ripple effects are expected to be felt in India, where Huawei sells mobile-phone handsets and supplies gear to telecom companies.
While India’s Department of Telecommunications is yet to make a formal call on allowing Chinese vendors – Huawei and ZTE – to be involved in deployment of fifth-generation (5G) technology in India, the government is likely to allow Huawei to participate in the upcoming 5G field trials, reports Economic Times.
The 5G trials are vendor neutral and there’s no question of blocking or keeping any vendor away, the daily added, quoting an Indian government official.
Huawei’s current 4G equipment supplies to Indian companies are unlikely to be hit in the short term, as it reportedly has enough inventory to last for a year. Both Vodafone Idea and Bharti Airtel use Huawei’s 4G gear in several telecom circles.
However, the US ban is expected to slow down its business in India. As for handsets, Huawei has clarified that it will continue to sell Android-based smartphones from its existing stocks, but industry observers feel future sales may take a hit.
In India Huawei sells handsets under the brand names Huawei and Honor, with the former catering to high-end clientele and the latter to budget consumers.
It was aiming to widen its market share in India with the rollout of 5G technology. However, with this new ban the launch of its new devices is expected to be suspended until a way out from the current impasse is found.
Apart from the Android operating system, Huawei also stands to lose access to Google Media Services, which includes Gmail, Maps, and access to Play Store.
Google decided to suspend ties with Huawei after the administration of US President Donald Trump added the Chinese company to a trade blacklist, as the administration considers the company to be a security threat. The move in effect bans Huawei from buying parts and components from US companies without US government approval