If these allegations are accurate, Google’s legal and PR departments are going to be very busy for a while…
In short, Skyhook says that Google effectively forced Motorola to cancel a deal with Skyhook in which Skyhook would have provided location-based services in Motorola phones -- because Google wanted Motorola to use Google's own location services instead.
Google's leverage was threatening to withhold certification of Motorola's Google Android-based phone, according to Skyhook CEO Ted Morgan, which would have prevented Motorola from selling it.
Check the link below for more details, including some good questions about how meaningful “open” and “free” are, in conjunction with Google Android. Bummer for Motorola’s smartphone business, which appears to have essentially bet its future on Android.