Huawei will continue to have access to the version of the Android operating system available through the open source license, known as Android Open Source Project (AOSP), that is available for free to anyone who wishes to use it. There are about 2.5 billion active Android devices worldwide, according to Google.
However, Google will stop providing Huawei with access, technical support and collaboration involving its proprietary apps and services going forward, the source said.
Huawei has said it has spent the last few years preparing a contingency plan by developing its own technology in case it is blocked from using Android. Some of this technology is already being used in products sold in China, the company has said.
In an interview with Reuters in March, Eric Xu, rotating chairman of Huawei, struck a defiant note in anticipation of retaliatory actions by U.S. companies. "No matter what happens, the Android Community does not have any legal right to block any company from accessing its open-source license," he said.
Popular Google apps such as Gmail, YouTube and the Chrome browser that are available through Google's Play Store will disappear from future Huawei handsets as those services are not covered by the open source license and require a commercial agreement with Google.
But users of existing Huawei devices who have access to the Google Play Store will still be able to download app updates provided by Google. Apps such as Gmail are updated through the store, unlike operating system updates which are typically handled by phone manufacturers and telecoms carriers, which the blacklist could affect, the source said.
The impact is expected to be minimal in the Chinese market. Most Google mobile apps are banned in China, where alternatives are offered by domestic competitors such as Tencent and Baidu.
Huawei's European business, its second-biggest market, could be hit as Huawei licenses these services from Google in Europe.
"Having those apps is critical for smartphone makers to stay competitive in regions like Europe," said Geoff Blaber, vice president of research, CCS Insight.
