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Isn’t a legal product a better one than an illegal counterpart?

Only if the user (in Google's case the product) would be the one liable.

Nope. It's because the illegal product has lower cost (because complying to regulations costs money one way or the other).

It may not be cheaper when you have to deal with the repercussions of breaking the law though.

Those are usually just slaps on the wrist.

Sure, if the products and companies are identical in every other fashion, which is never true in real life.

Are you suggesting that legal products/services always win over illegal products in a capitalist market? Think again: Uber, AirBnb, etc.

No, you are the one claiming that illegal products are always cheaper. I am saying it is murky.

The question was about otherwise identical products.