Google's motto now is "Don't get caught *" and if you don't pay too much of a fine. Like Philip Morris, Goldman Sachs and every other cutthroat corporation they have built fines, lying, cheating, stealing and lawyer fees in the business model. The hope was that Larry would restore the idealistic image of Google that probably had once. Oh boy, turns out he was at the helm of quite a few not-so-nice things. Trying to benefit the world of course.
So "Google wouldn't do this" is out of the question.
The reason you see propaganda videos and Google PR people take to the the web to explain themselves with blatant lies shows that the truth is coming out, slowly but surely. Google has not had a good year this year, unless you count the money they made.