I've published academic research while working at Google. If I got an emergency request to retract a published paper (note that I would have already followed all the necessary steps for publication approval internally), I'd retract it immediately, if there was a legitimate reason (you can see on retractionwatch the sorts of things that lead to retractions). If there wasn't, I'd ask "can we pause the retraction and figure out a better solution based on data", and if the answer was "no", I'd retract it immediately, but follow up with a vigorous protest.

Industrial researchers and non-PIs (IE, research analyst working in a PI's lab) don't have the same freedom and integrity rights as a PI. To me this seems like a reasonable (and probably the only reasonable) policy for industry.

I don't really think it's dystopian- if a paper I wrote reached the point of needing a retraction it means some serious messup occurred or there's a major PR fiasco.

Note that in this case I am not sure if there was a retraction, or an desubmission- the paper hadn't been published yet so it's not really a candidate for retraction. The term for this is 'withdraw submission'