Alibaba Begins Fresh Push To Take On Android

Chinese e-commerce giant Alibaba has said it will subsidise handset makers using its mobile operating system, as well as setting up a large incentive fund for app developers.

Manufacturers will get 1 yuan (11p) per month for every smartphone they sell that runs on Amos, Alibaba's mobile operating system - according to the company's blog.

Five more Chinese companies have agreed to make Amos handsets, and app developers will also be able to benefit from a 1bn yuan (£106m) incentive and revenue-sharing fund.

The move is being seen as a fresh challenge to the dominance of Google's Android system, which has 90% of the Chinese market.

Alibaba was on the verge of a smartphone tie-up with Acer last September, but the deal never materialised, with the Chinese group claiming pressure from Google was to blame.

Google said Alibaba's system was heavily based on Android and had "taken advantage" of its hard work. However, the Chinese company insisted it was its own original product.

Previously called Aliyun, the Chinese system launched in 2011, but up until now has failed to take off, with only a few domestic handset makers getting on board.

China's Ministry of Industry and Information Technology last month warned of Android's dominance and claimed Google had discriminated against some local firms.

Alibaba is China's biggest e-commerce business and is reported to be worth between $50bn (£36bn) and $120bn (£79bn).

The privately-owned company runs some of the country's most successful internet shopping sites.

Its Taobao website, similar to eBay, allows people to trade new and used goods and has hundreds of millions of registered users.

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