It does in the sense that they're losing business, as people describe in this thread. But I get your point, Google seems to be enjoying the profits more than the harm to their reputation. If it gets bad enough, maybe they'll rethink.
They're losing business that they don't want. Silicon Valley culture has embraced saying no, firing clients and customers, choosing the right audience, etc. This even fits into finding product-market fit. You don't try to please everyone, and find a well-defined segment. So to Google it might not seem like it's getting bad at all. To them, maybe the trash took itself out, they got rid of that annoying customer who complains about their marketplace, whereas they appreciate the quiet reporting of an ad that's against the ToS...
They're losing business that they don't want. Silicon Valley culture has embraced saying no, firing clients and customers, choosing the right audience, etc. This even fits into finding product-market fit. You don't try to please everyone, and find a well-defined segment. So to Google it might not seem like it's getting bad at all. To them, maybe the trash took itself out, they got rid of that annoying customer who complains about their marketplace, whereas they appreciate the quiet reporting of an ad that's against the ToS...