" This encryption happens as it is written to disk, without the customer having to take any action. Google encrypts data with distinct encryption keys, even if they belong to the same customer. Data is encrypted using 128-bit or stronger Advanced Encryption Standard (AES).
Google encrypts core G Suite data while it is “in transit” as well, whether it is traveling over the Internet between the customer and Google, or moving within Google as it shifts from one data center to another. We encrypt this data between Google and our customers using HTTPS with forward secrecy. "
The truth nobody knows but it seems that they encrypt with their own keys so that means they can open the data and read it.
For one, it's just a bad business decision, opening yourself up to an incredible legal liability for relatively little benefit.
For another, just because they have more funds and a larger legal team doesn't mean they can devote the same quantity of resources to that specific case. Google is huge and might have resources dedicated to legal ~100x more than any other single entity, but if Google is party to ~1000x more cases than the other party, they'll still have a tough time matching resources.