This is a negative business model and should be subject to anti-trust. It's another ruse to hoover up more data by Google. How are software companies going to compete with a google subsidized alternative?
Tomorrow google could attack other software verticals with their vampire data collection business model with negative dystopian externalities for society, businesses and their employees.
Who is going to pay for all the software employees made redundant by these kinds of business models? This is a kind of dumping which is illegal in most economic systems.