You'd think so, along with other countries that have defamation laws. But there's no indication of any penalty, and Google wasn't even made to pay all the legal fees. Perhaps their business model (if there is any) can cope.
In sane countries, it's enough for them to post a disclaimer ("This is AI. AI can make mistakes. Check all results.") Which is what they do.
Overregulation, at best, is a good way to guarantee that your country won't have access to interesting and useful features and technologies. At worst, it's a good way to guarantee that the twenty-first century will belong to the US, if not to China.
And lawyers will use this case to build a better defense next time.