From what I know, at least in my country, this is the case. Additionally, in the case of Google Domains, nothing is stopping you from migrating your domains to some other registry right now, before they get transferred over to Squarespace.

One could argue that having your data with Google is more damaging to one’s privacy than having it with any other company, considering that Googles business model is the selling of ads based on your data, but that’s besides the point here.