It seems to me that Microsoft behaved that way for over a decade. It resulted in some pissed off geeks, and no real problems until the Europeans fined Microsoft enough to scare the company. (A fear they never recovered from.)
Partly Microsoft got lazy and didn't execute the products customers wanted, maybe the senior people were wrong generation to realize they had the wrong products and Google and Apple were leapfrogging them, maybe all the legacy cruft in their ecosystem slowed them down, maybe the world changed so they didn't have the same market power. I don't know that fines ever really scared them into changing behavior. They flushed more money down the drain in online services than anyone ever threatened to fine them.
Even more than most, Google's business depends on trust. Once people feel they're going to get screwed over after investing time and trusting Google with their information and data exhaust, they'll go to DuckDuckGo, Apple, Facebook (ha), whatever. Google has nothing like the moat Microsoft had. On the Internet, the switch to the competition is a click away.
Every non-technical person I know has a Gmail account, they sure don't know what reader is.