For example, if you say "I'm going to research the effect of eating lots of eggs on cholesterol", the government won't care what outcome you find/publish. They funded you because they want the truth to come out about the question you seek to answer. There are some topics where the government "has a dog in the fight" — but much of their research funding is for areas where they are truly agnostic.
Google, on the other hand, only funded research related to their business. So they had an agenda, and all the parties knew it.
I'm not saying they shouldn't have been able to fund this, or that this is any worse than other industry-funded research. Just that it seems some professors did not make the relevant disclosures, and there was a pretty strong incentive for professors not to bite the hand that feeds them.