Skyhook sues Google over unfair practices

Skyhook, a location technology company, has sued Google over unfair business practices. They allege that Google strong-armed Motorola into using Google's location services on their Android platform, even though Skyhook and Motorola had a previous agreement. They went on to claim that this is not the first time Google has interfered with a Skyhook's manufacturer agreements.

Motorola had apparently already agreed (contractually) to use Skyhook's services, but Google then told Motorola that if they were going to use the Android platform, they would have to also use Google's location services. Skyhook is estimating their financial loss in the tens of millions.

This might not be a reasonable complaint, particularly as Google's Android OS is supposedly an open platform. "Though Google claims the Android OS is open source...Google is effectively creating a closed system with respect to location positioning," the complaint stated.

We aren't attorneys, but Google might argue that their concern was not for their profits, but for the compatibility with Android. In this case, Google was only protecting their OS as a whole by 'suggesting' that Motorola use a proven combination.

source: The Wall Street Journal via PhoneScoop