Were you actually surprised at the announcement or just at the timing?
Google has, for years now, been consistently developing and promoting their own services to the frequent detriment of prior service partners and query return breadth. This is another logical revenue step... albeit one that Google, also for years, was at pains to label 'evil'. The humourous part of this are Google's attempts to deflect, even redefine, pay for inclusion: such behaviour simply underlines that they know they have finally closed the door on their business 'otherness'. The emperor has no clothes. The sooner Google-centric webdevs acknowledge this and undertake a realistic reassessment of their business model the longer they may stay in business.
Of course there are many (very) profitable niches that Google has not yet, indeed may very well not ever, be in direct or even indirect competition. However, even there the old adage of 'all one's eggs in one basket' should be carefully considered.
Note: If memory serves I make a similar post about every quarter... ah well.