RE: Sooo....
Nope. Google is negotiating with 2 bodies, a collection of somewhere around 8000 authors/literary agents/attorneys, and a trade association for publishers. Both of these groups are primarily for American authors and publishers.
If you read the proposed notice from google (awaiting court approval), you will see that this affects all authors and publishers in all countries covered by the Berne Convention. http://books.google.com/booksrightsholders/notice.html
Under the settlement, google is authorised to: 1) sell to institutions subscriptions to an electronic Books database, 2) sell online access to individual Books, 3) sell advertising on pages from Books, and 4) make other uses. In exchange, google will pay 63% of all revenues through the registry that google itself is setting up. The registry itself is expected to take 10-20% of the income for "administrative fees".
For having already made digital copies of works, google will pay $60 per infringement for each complete book. Rather low when compared with the sort of payments expected by the RIAA/MPAA for each non-commercial infringement of the same type. To receive this $60, authors will need to register a valid claim before 2010.
Authors of out of print books will lose all their rights to exclusive distribution unless they opt-out. Google is given the right to not only sell copies of these out of print books, but to place adverts on every page. This right is granted for the full copyright term of the book.
Authors of in print books "may" be able to negotiate different terms with google, but no such point is made with regards to out of print books. So in addition to losing the right to keep a book out of print, those authors will also be paid a fee set by google regardless of their own wishes about pricing.
Rightsholders are specifically not allowed to remove their books from all uses unless they do so before 2011. If books are not removed before then, google has a right to use that work for any purposes they deem fit as long as the work is not displayed (providing of course that the author opted out their out of print works).
Future possibilities listed in the notice include on demand printing. If your book is out of print and you have not yet told google that they cannot use it, tough titty to you. They'll print your book and charge whatever they see fit for it. You may then get your fair share of the money, or you may not. Depends on whether the registry has your details, or whether your old publisher is claiming ownership. There will also be a cut going to all the authors of books that don't sell just for being included in the registry.
On the subject of inclusion fees, "Once Rightsholders have received their Inclusion Fees, they will no longer be permitted to exclude their Books or Inserts from subscriptions unless the Inclusion Fees are returned to the Registry". So, it's all or nothing. If you allow google subscribers to browse your work for 2 years, you'd better be in it for the long haul or you'll get nothing at all.
To cap all this off, if you aren't registered with the registry, you wont see a penny. Unclaimed funds will not be reserved while the registry tries to find the rights holder, they will instead be paid to the registry and to authors who are registered.
So, no, this is not fair competition. Google is effectively getting to stomp all over copyright, snatch up huge volumes of out of print books, print and publish without permission from the copyright holders and generally crap all over authors from all nations who will be given no options in the U.S. court system. Unless copyright laws are changed to allow other companies to wade in and snatch what they want on an opt-out basis, this is nothing like competition.