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I wonder if the prospective company's G Suite data gets crunched.

I always thought if they were not doing something similar for key hires. Not for engineers as it would most likely leak eventually, but like if they are going to hire a VP maybe the founders or someone else has hire_vp_or_not.py that parses their e-mails from previous jobs, etc...

And risk losing thousands of existing paying customers if it ever came out?

Not a smart choice, considering you're betting on the company you're illegally spying on to get profitable at some point.

It’s not illegal if it’s in the ToS.

And even the data of enterprise customers is used to improve Google’s machine learning algorithms, according to those.

So not illegal, just entirely immoral. But when has that ever stopped Google?

Exactly. These days this is exactly how Google works. Ask an AdWords, Analytics, or AdSense user who slowly realizes that Google has full access to their business data for any purpose.

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