What does the FCC have to do with this?

Anti-trust. They're selling part of the problem (inference via Gemini) and now they're selling a solution. They also dominate web standards by developing the dominant browser. And they control one of two dominant phone platforms that will collaborate to enable this solution.

If this were some smaller company that just did cloud then it'd never even make it to PoC. This can only happen because it's Google Cloud, and they can leverage everything they own all at once. Those not buying into their ecosystem can take a hike.