An argument there could be that the user still gets to choose which search engine the omnibar gets sent to.
I don't agree with Googles decision (I strongly disagree with it). Just stating that under the letter of the law (of the app stores policies) I can see why app stores feel they have the power to govern the search results in such apps (iirc web browsers have a exception to the clause - /me goes to double check Googles policy on web browsers - brb)
EDIT: With a quick 5 min glance at the policy it looks like Google have been extremely heavy handed because "Any apps referencing COVID-19, or related terms, in any form in their metadata will only be approved for distribution in the Play Store if they are published, commissioned or authorised by one of these entities." But podcasts in their search couldn't be in their play store meta data. (Still digging)