Earlier quoted context omitted.
No they are not. The courts have been swift and merciless on this shit for music, video and similar things. Google may seem big but they do depends on the law still.
In the current system where Google plays lame duck, sure. But all G has to do is say 'yeah if you want us to feature your content, you must agree to X' With 90% of the search market, half of phones, and who knows what percentage of the smartTV market, they could institute a death sentence to those they wanted to. IF they wanted to.
That said, I agree with the principle of what you're saying. Google put a LOT of things in place on youtube specifically so the large publishers wouldn't go after them, and that has extended to everything else.
Google absolutely has a large responsibility in this, but it's also true they're not the only party with responsibility for it.