The details are hard to puzzle out. Apparently Alibaba was using "their own OS" (my guess is it's an Android fork a-la Kindle, but that's pure speculation) and Google told Acer (the hardware OEM) to kill it or they'd lose their Android license (for what products it isn't clear -- it seems unlikely that existing products are licensed under contracts that can be revoked like that).

That kind of behavior certainly can be anticompetetive if it's preventing the entrance of new products into the market. If my guess is right and "Aliyun" is an Android fork, then cry me a river -- if Acer wants to sell an official Android device they shouldn't expect to make money selling gray market clones on the side. And I wouldn't be at all surprised if their contracts included a clause covering exactly this (i.e. ship only official Android if you ship any Android at all).

But yes: if Alibaba is really trying to sell a home-grown OS, and Google is trying to kill it, then that's bad.