Valley firms built their financial success on being content neutral and even turning a blind eye to blatantly illegal content until they found ways to automate enforcement (or not), but are now forbidding competitors from being the same.
Now if you compare apples with apples, can you recall people using Google to research how to do bad things? Sure. Plenty of people who went to prison after police found they'd been searching for stuff like "how to hide a body" or bomb making instructions.
If they really wanted them to implement some content moderation, it would have been more time, not to mention a clear specification for the feature changes they want, to prevent the solution from getting rejected again.