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>Points 2-4 would involve Google violating (likely) their own Ts&Cs with customers and (possibly?) state/federal law

I don't think it does. Until recently, they seem to have been using the paid apps for Business e-mails to build advertising profiles with no repercussions.

http://googleenterprise.blogspot.com/2014/04/protecting-stud...

I also don't think there's anything in the T&Cs for Google Drive(both free and business) that says that they won't use the contents of the docs for advertising purposes.



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