Not sure if it matters, but all chats at Google default to history off (deleted after 24hrs). Turning on history only keeps messages for 30days and you have to do this for every single group chat, private chat, etc. There is no archive or long held messages like Slack.
Yes, these settings were chosen specifically to destroy evidence, and the courts are increasingly unhappy with that. All conversations involving people on legal holds (such as the CEO!) should be retained indefinitely.
If this goes through, all that will happen is that Google will re-engineer the backend to evade whatever standard set by the ruling. Who wins from this outcome? Perhaps the engineers getting paid and promoted to work on said project. Certainly not the courts or the "people".