Google Play services enables important features of your device and helps make your device more secure and reliable. Google Play services is different from the Google Play Store. Learn more about Google Play services.
How Google Play services can use your contacts
Google Play services may periodically access your contacts to perform core services on your device. Some examples are:
To backup & restore contacts
When you use Google Play services, you can restore your contacts on a new device from your Google Cloud backup or from your old device.
Tips:
- To backup your contacts, on your Android device, open Settings
Google
- To restore your contacts, open Settings
To help you manage your contacts
Google Play services may access your contacts to help you with services such as the examples described below:
- Move your contacts between Google and non-Google accounts
- Automatically clean up and fix issues with your contacts
- Get easy access to your contacts in other Google apps and services on your device through features like autocomplete suggestions
- Look up contacts in your work or school account
To sync your contacts with your Google Account
When you sign in to your Google Account on your device, Google Play services may periodically access your contacts in the background to sync them with your Google Account so that you don’t lose them.
Tip: To change your contacts sync setting with your Google Account, on your Android device, open Settings 
To make your contacts available to other Google apps, services & devices
Google Play services may periodically access your contacts in the background to improve availability of your contacts for Google apps and services on your device and other devices like your smart speaker. This enables voice command experiences like “OK Google, call Bob.”
Tips:
- To manage on-device sharing of your contacts to other Google apps and services, on your Android device, open Settings
- To opt in and manage sharing of your contacts to other devices like your smart speaker, on your Android device, open Settings
To share files with your contacts
Google Play services can access your contacts in the background to help you securely share files with your contacts, even when you’re not connected to the internet.
Google Devices & sharing Nearby Share.How Google handles your information
In order to enable some features, Google Play Services may collect and send some information to Google which may include crash logs and diagnostics information for analytics purposes. Any information that Google collects is handled in accordance with Google's Privacy Policy.