Huawei Partners With TomTom To Develop Google Maps Alternative

Chinese telecom giant Huawei Technologies Co. Ltd. is collaborating with Dutch digital maps supplier TomTom NV TMOAF to make an alternative to Google Maps for its phones, according to Reuters.

What Happened

Huawei can now use the Dutch digital mapping company’s maps, traffic information, and navigation software to develop apps for its smartphones, a TomTom spokesperson told Reuters on Friday.

The deal, signed some time ago, was not made public until late last week, added the spokesperson.

Why It Matters

The U.S. Department of Commerce banned Huawei and placed the Chinese phone maker on its entity list, citing national security risks in May 2019. 

Following the ban, Alphabet Inc’s GOOGL Google suspended all business activities with Huawei, including the transfer of software and key technical services, which forced Huawei to stop relying on Google’s Android mobile operating system for its smartphones

The Chinese phone maker, at the time, responded to Google, saying it would build its own operating system. Later in August, a report published in China Daily claimed Huawei could develop its “mapping service,” to challenge Google Maps’ dominance.

Price Action

TomTom’s shares declined 0.96% to close at $11.25 on Monday.