Goggle’s response.

While Android remains free for anyone to use as they would like, only Android compatible devices benefit from the full Android ecosystem. By joining the Open Handset Alliance, each member contributes to and builds one Android platform — not a bunch of incompatible versions. We’re grateful to the over 85 Open Handset Alliance members who have helped us build the Android ecosystem and continue to drive innovation at an incredible pace. Thanks to their support the Android ecosystem now has over 500 million Android-compatible devices and counting!

via The Benefits & Importance of Compatibility | Official Android Blog.

From: Google has dropped an Android-shaped bomb on China’s mobile market

Baidu, for one, is in negotiation with a number of companies to develop smartphones using Baidu Cloud, a system that sits on top of Android and strips out Google’s services, replacing them with its own, Chinese versions. Given Google’s statement and the fact that it directly rivals Baidu, the Chinese search giant would be justified to feel Google may have scared existing Open Handset Alliance partners away from working with Baidu Cloud.

It’s worth noting though that Baidu has steered clear of calling Baidu Cloud an OS, likely in order to position its offering as one that supplements Android rather than supplanting it.