ZTE Exports Ban May Mean No Google Apps, a Death Sentence For Its Smartphones

New submitter krazy1 shares a report from Ars Technica: The U.S. government is going after another Chinese Android device maker. After shutting down Huawei’s carrier deals and retail partners, the government is now pursuing ZTE. The U.S. Department of Commerce has banned U.S. companies from selling parts and software to ZTE for seven years. ZTE was caught violating U.S. sanctions by illegally shipping telecommunications equipment to Iran and North Korea. The company then made things worse by “making false statements and obstructing justice, including through preventing disclosure to and affirmatively misleading the U.S. Government,” according to the Department of Commerce.

The latest news from Reuters raises even bigger issues for ZTE, though. A source told Reuters that “The Commerce Department decision means ZTE Corp may not be able to use Google’s Android operating system in its mobile devices.” Android is free and open source and will probably remain free for ZTE to use without Google’s involvement. Reuters’ source is probably referring to the Google apps, which aren’t sold to device makers but are carefully licensed to them in exchange for other concessions. The Google apps package includes popular services like Gmail and Google Maps, and it also unlocks the Play Store, Google Play Services, and the entire Android app ecosystem. For a market-viable Android device, the Play Store is pretty much mandatory in every country other than China. So while ZTE could conceivably source hardware components from non-U.S. sources, being locked out of the Play Store would devastate ZTE’s smartphones worldwide.

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