Facebook Inc (FB)’s Android Twist Could Force Google Inc (GOOG)’s Hand

Yahoo has been rumored to be considering purchases of both Yelp and DailyMotion, companies that compete with Google’s Zagat and YouTube, respectively. As it continues to compete with Google on various web service fronts, what if Yahoo was to create a version of Android that replaced the Google services with its own?

Such a move would be far away, but the possibility of a trend developing should give Google Inc (NASDAQ:GOOG) cause for concern.

If this becomes a trend, Google could be forced to rethink its Android strategy

There’s no guarantee that a Facebook version of Android would be successful, or that it would become a trend, leading other companies like Yahoo to join in.

But if it does, Google Inc (NASDAQ:GOOG) would have a real problem on its hands. As it currently stands, the company doesn’t mind forgoing profits on Android for the simple reason that it makes them up by adding additional users to its web services. But if it loses that advantage, what point would there be in continuing to finance the development of Android?

Rather, Google Inc (NASDAQ:GOOG) might be forced to take greater control of Android, a theory that has fueled rumors of an impending split between the search giant and Samsung. Commentators have called for Google to change its strategy for years; Facebook might finally force the company’s hand.

April 4 will be a key day for mobile computing

Investors in the mobile tech space should keep a close eye on what comes out of Facebook’s event. Depending on how much Facebook changes Android, Google could be forced to reconsider its mobile strategy. Otherwise, other competitors like Yahoo could follow, leaving Google with little incentive to continue open source Android development.

The article Facebook’s Android Twist Could Force Google’s Hand originally appeared on Fool.com is written by Salvatore “Sam” Mattera.

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