Alibaba to Spin Aliyun OS into Separate Company

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­China's Alibaba Group is planning to spin off the division developing its own smartphone OS into a separate company and pump US$200 million into the project.

Citing an internal memo, the Reuters news agency reported that the decision had been taken by the company's founder and chief executive Jack Ma.

The company was expected to announce a range of smartphones based on its own Aliyun OS earlier this week but suddenly cancelled the press conference after it claimed that Google had warned the handset supplier, Acer off supplying a rival OS.

It later emerged that Google was concerned that the Aliyun OS made unauthorised use of Android source code, and as such did not meet the usage agreement that requires Android based devices to be generally compatible with each other.

There have also been claims that a mobile app store operated by an Alibaba subsidiary was hosting pirated copies of Android Apps.

On the web: Reuters

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Tags: [alibaba]  [aliyun]  [acer]  [China

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