Cases like this always make me wonder how much of the penalty actually changes behavior versus just becoming another cost of doing business.

I often wonder what would happen if Google just refused to pay, or just kept it stuck in legal purgatory as that would be cheaper than paying the fine.

It only changes behaviour if the risk of having to pay outweighs the benefit. And Google won't tell what they earned through that I guess.

They definitely affect behavior.

Legal compliance is a huge part of modern enterprises precisely because of cases like this. Ultimately, everything has a risk/reward analysis, but it factors in heavily.