SHANGHAI, Sept 21 Alibaba Group,
China's biggest e-commerce firm, will spin off the team
developing its Aliyun mobile operating system, which Google Inc
claims uses aspects of its own mobile operating system
Alibaba Group will invest $200 million in the spin-off as
the team developing the mobile operating system expands, said
founder and chief executive Jack Ma in an internal memo on
The Aliyun mobile operating system hit a snag last week when
a planned smartphone launch in Shanghai with Taiwan's Acer Inc
was cancelled due to what Alibaba said was
interference from Google.
At the heart of the issue was Aliyun, which Alibaba said was
self-developed but Google said contained aspects of Android.
China's smartphone market is expected to top the United
States as the world's largest smartphone market this year.
Earlier in the week, Alibaba said it bought back half the stake
Yahoo Inc owned in the company for about $7.6 billion.