Yes, this is why we need to stop supporting companies that run such centralised walled gardens. This includes google, facebook, youtube, instagram, whatsapp etc.
You want to stop people at Google from being able to internally distribute iOS apps permanently? Apple and Google are far too reliant on each other for Apple to follow through with such a large punishment. Businesses skew towards "rational", not "fair".
Neither would Google.
This is bullshit and Google should've been forced to deal with their mistake.