What's wrong with an exclusive contract? Google seems to be ok with Verizon signing an exclusive contract with Bing for the Fascinate based on inaction and no such stop ship order given. As far as "proprietary application stack", is Google Location Service open source? Or is it part of the closed off Android stack similar to the Marketplace and several apps? (Honest question, I can't find evidence either way). Also, as pointed out by the court filing, and comments on reddit, the Skyhook api wasn't breaking any Google apps that use location as far as they know, considering the phones were passing all of Google's certification processes.

From what I read in the court filing, Skyhook's side of the story seems to be one eerily similar to maneuvers Microsoft was pulling in the 90s. Show interest in a technology from a small company, talk friendly with them, then create a competing version, embed it in the OS, and squash business deals that favor the small company.

Ultimately we will have to see what the courts say on this, if it goes that far. May just be easier for Google to settle this one out of court.