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Using the dominant position of Google Search to push other Google properties, isn't this what "Don't be evil" was supposed to be about?

No, it was supposed to be a marketing slogan for idiots who think for-profit companies can "not be evil" or care about it.

Only if it harms user experience.

Which it does when it deliberately shows inferior results. See:

Real-Life Examples Of How Google’s “Search Plus” Pushes Google+ Over Relevancy Jan 11, 2012 at 1:58pm ET by Danny Sullivan