Is this google starting to test the waters when it comes to arbitrarily kicking out software they personally don't like? (open source, decentralized, privacy oriented etc.) I might of course be exaggerating a bit here, keep that in mind. - Element and Matrix are growing but still not equipped to fight back at large against this, so it is unlikely to create too much negative press - If Google starts to catch too much…
I think the situation is probably more interesting than deliberate anticompetitive evil. I bet that there was indeed some policy violation, and some minor bureaucrat is reasonably applying the policy, but in a way that misses the big-picture impact of doing so, for example threads of outrage high on Hacker News. The policies back them into being a monopolistic heavy whether they mean to or not, because they're so big…
That only happens because they deliberately put themselves in a position of market power. If they didn't have such crazy amounts of power nobody would care about their "policies" misfiring. None of this is accidental in the big picture, we're well past any window of plausible deniability with Google. They can't perpetually claim incompetence.