Earlier quoted context omitted.
Yes, that is a feature that Google has hardcoded into Chrome. You CANNOT disable auto-updates or even make it so that you are asked for confirmation.
Of course you can (disclaimer edition note: but it's not necessarily for the faint of heart, and isn't officially supported. On their updater and update policy, Google manages to be worse than Apple on Windows, which is already pretty fucking bad). 1. On Windows and OSX (at least), the actual updating is performed by a single service running in the background for all Google applications (the Google Updater). This ser…
Another point: Your method will disable all google updates (google toolbar, google talk etc) which is a good side effect imo but not necessarily desirable by all.