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Google has explained why it gave Acer an ultimatum over a new handset running a modded version of Android.
The company says the phone will be made available in China, hitting store shelves there Friday.
The company is reportedly seeing strong demand for its Aliyun operating system and is now firmly squared up with Android.
The Chinese search giant says Google is "just speculating" about its Aliyun operating system, and insists it's different than Android.
The China-based company says Google threatened to pull its Android support from Acer if Acer pursued Alibaba's Aliyun operating system.
The mobile operating system is called Aliyun OS and will be running on the K-Touch Cloud-Smart Phone W700 by the end of this month.
As a member of the Open Handset Alliance, Acer isn't allowed to use Alibaba's forked version of Android, Google says.
Originally announced in April, Yahoo Mail's exit means that Chinese users must use another service, such as Alibaba's Alimail.
Company is currently offering a mobile operating system in Chinese, but is looking to expand globally with its English option, Reuters reports.