From the Skyhook vs Google suit:

In the Massachusetts court, Skyhook Wireless has alleged that Google used its control over Android not to maintain the quality of its technology, but to squelch a competitor.

You might argue that Google has become more evil over time but I don't think it's in Google's interest to “squelch” small competitors. Android might be open source but Google still controls the platform and Android might be free but in return Google will demand access to location based data from smart-phone and tablet manufacturers.

On a similar note, last year, Apple announced to roll their own location based service after ending its agreement with Skyhook.