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This must be nonsense. No huge company with competent legal experts are going to allow a policy of blatant personal property theft.
They're evil but they're not stupid.
You didn't read the article, did you? It's in their repair contract that you must agree to before sending things in for repair.
From a legal perspective, they didn't steal it...
...you gave it to them.
Depends. Where I live even signed contracts can be deemed illegal in parts if a clause is still seen as unexpected or surprising for the customer.
If Google included a clause that states the customer loses a kidney to them, wouldn't make it legal just because it's written there.
It's legal in the United States where consumer protection laws aren't as strong as in some other places.