We are in the time of a new Microsoft. For example, the idea of Microsoft contributing to open source software in the 1990's is laughable. They would have never done that. The idea of Microsoft making iOS and Android the prime experience for their apps instead of their own mobile OS (going back just a year or two) wouldn't have been considered 15 years ago.
Technically, Android isn't a competing product of Microsoft. Android is a mobile OS. Microsoft doesn't have a mobile OS. Additionally, Android is open source.
We often consider Android as a Google product due to something called Google Mobile Services (GMS). This is the suite of apps that OEMs often license when they put Android on a device and includes things like Chrome, GMail, and YouTube. The crown jewel though is the Google Play Store. Since that's how most people get Android apps, most OEMs include the whole GMS suite on their device. It's a package deal.
I do wonder how much Google will be in the Android on the Duo. Reportedly, the default browser will be Edge, the default mail app will be Outlook, and Microsoft Launcher is the default launcher. Reportedly the Google Play Store will be there as well. Finally, it's reported Microsoft worked with Google on this OS. So it does raise the question of how much Google will be in this version of Android.
While it's Android, this may still end up being a very Microsoft OS.