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It's not 100% clear in the article, they still wouldn't be able to use Google Play Services right?
At this point this probably hurts Google more than anyone else. The rise of alternative app stores for Android is Google's worst nightmare.
How so? If the alternative app stores where better all OEM's would have flocked to it. Samsung would have completely dropped Google Play and would exclusively only support Galaxy Store. The only market where OEM's use alternative app store is China, because Google doesn't run Google Play in China. Android being open source means anyone can develop an app store and there is nothing stopping anyone. OEM's continuing to use Google Play is because they get access to millions of apps and ad revenue from Google and none of the other app stores can provide that as of now, except in China.
First China has 1.4 billion people. It's the biggest market for anything, including Android.
Second, every parallel appstore weakens Google's monopoly.
Third, it's not hard to develop an Appstore. The difficult part is to get people to use it. Bans are very effective in moving people to a new appstore :)
What does China having 1.4 billion people mean to Google? nothing, because they have chosen not to do business in that country. So the argument is moot. Even people in China who use VPN, install Google Play store on their phone to access banned apps in China. BTW there are 3 billion 30 day active android phones with Google Play. If you take biggest Android appstore in China it doesn't even have 500 million 30 day active users.