It is absolutely censorship. It's textbook, dictionary, censorship. Take wikipedia's great opening paragraph:
>Censorship is the suppression of speech, public communication, or other information, on the basis that such material is considered objectionable, harmful, sensitive, or "inconvenient." Censorship can be conducted by governments, private institutions, and other controlling bodies.
In my opinion it's especially egreoious, requiring remedy, if the censorious actor has a large amount of control over a medium of communication. In this case google dwarfs perhaps governments.
No, they are technically incorrect. As other posters have pointed out, it literally is censorship. Whether a private company or government is doing it is irrelevant to the definition of that term.