AT&T replaces Google with Yahoo on Android phone
itworld.com
itworld.com
Google can't get into the Mobile space with a platform and then expect they can enforce that their platform maintains their dominance in search. It's not competitive, and I'm sure they were expecting this to happen.
Disclaimer: I work for Y! but not in search.
Apple has full control over whats installed on an iPhone. They openly admit that they block any applications that compete with theirs. Couldn't Google do the same?
It's exactly the same circumstance.
Google has always explained that they give Android away because it will encourage more usage of their web services. But after Nexus One, it's obvious Google has more of a vested interest in Android than just "the more people on the internet, the more money Google makes".
I know many of the Android phones have "with Google" printed somewhere on the casing (on my Eris it's on the battery door), and the Android brand has been fairly well associated with the concept of "Google Phone".
AT&T is presumably free to switch the services out as they wish - but I have to wonder if their replacement apps will provide a user experience that is at all tolerable. If things break, don't work as expected, etc. the assumption from the average user is going to be that Google is broken. They don't know or care that AT&T has replaced their services with Bing/Yahoo/etc.
On top of which, users who hear the Android name may expect certain things such as Google Voice, support for GMail, Google Calendar, etc. and be mighty upset when they aren't there.
On the other hand, most of my friends and acquaintances don't actually think of "Android" as a brand either - they know the Droid, the Nexus ("Google Phone") or the MyTouch.
Other handsets that aren't part of the Google Experience program, such as ones from HTC that run the Sense UI or from Motorola that run the Blur frontend, can do whatever they want within the terms of the open-source license.