Implication is that they have the ability. The only thing that removes their ability for targetting and tracking you is to block them at the browser or network level. Ie. don't give them the data in the first place.
Legal action against a multi-billion dollar corp. is the most expensive and about the last option for defending privacy of normal people.
I agree they probably aren’t doing it, but there is almost zero chance of a multi-billion dollar fine.
They’d just explain it away as an error and be given a few million dollar slap on the wrist.
It would be very easy for Google to make a plain language public statement about this and clear things up, the way Apple goes about their privacy/data handling.