"It probably wouldn't be industry ending (companies would merely have improve their compliance procedures) but it'd do a huge deal of damage in the short term."
This is why it is a problem for Google (even though they might not be directly responsible in this case) and the reason why Google should make sure HTC behaves.
Google should deal with this
This is why it is a problem for Google (even though they might not be directly responsible in this case) and the reason why Google should make sure HTC behaves.