ddmuse: I don't follow your reasoning here. How is "reduced fragmentation" in this case anything but an excuse to impose a barrier to market competition (detrimental to consumer choice)? As the quoted article indicates, Google seems to be using this notion as an excuse to promote its own interest and restrict potential competitors.
A possibility: Google intentionally misled developers and manufacturers to buy into the notion of its "open" operating system but is now tightening the noose via the "fine print" when it's too late for those companies to back out without substantial losses. Paranoid conspiracy theory? Perhaps. ;-)
What's sad is that according to Wikipedia, the Android operating system " is based on a modified version of the Linux kernel" (Linux being open-source *and* truly free). Speaking of which...
Linux and Mozilla (Firefox) demonstrate the benefits of open architecture to the consumer or user: rapid product evolution, astounding level of customization, wider selection of applications and add-ons, etc.
Side note, or rant:
Imagine if Windows were open-source (not free, just open-source): We (or our hacker friends) could customize each new version of Windows such that our Good Old Games would play natively with no issues whatsoever. Instead, we're stuck trying to find workarounds or emulators each time that Microsoft arbitrarily changes up the works without regard to backwards compatibility. Really, as bloated as Windows has become, would it be so damn difficult to include legacy support for games and a complete DirectX package by default???
Back to point:
What was I talking about again... ? :-P
Mostly I think this will be beneficial in this instance because the OEMs in order to differentiate themselves from each other w/ Android created UI overlays that by and large were detrimental rather than beneficial (with a few exceptions) to the Android platform. I agree that this is a bait-and-switch on Google's part towards its OEMs. Google is more worried about competition from iOS, RIM, WP7, (the other OSs) than the competition between OEMs. The OEMs are worried due to competition from each other.
Google plays favorites and practices cutthroat business tactics in a tough, competitive market. I viewed them like this for awhile so I guess you can colour me unsurprised. :) BTW I also view Apple, MS, and the OEMs like this too. These are businesses. Some of them are innovative, smart, and resourceful, but I don't believe they operate in my interest save for selling me products or services that I want to buy or use.
Blocking competitor's services are a problem when a company has a (near) monopoly then competitors and regulators can go after them and they'll loose or at the very least pay for costly court battles - as stated in the OP what Microsoft is doing in Europe to Google. The courts will decide if they have a case. In this market there is a lot of competition and strong players. Making Android more uniform across OEMs may allow it to sell better against other OSs overall since the UI and updates will be consistent.
That said, please note Google isn't saying that the end-consumer can't do whatever they want to the OS, just that the OEMs can't do whatever they want. In other words, you can still download skins and UI elements, but the OEMs can't prepackage and force those on the end consumer. That's why I said that Google is moving backwards on its openness, but isn't recanting openness. If they never release the Honeycomb code, then we can proclaim the emperor has no clothes when they claim they are "open" even to Google's definition of it.