No, that's not what they said at all.
"Google never artificially [favours] our own services in our organic web search results, and we perform extensive user testing to ensure that search results are ranked in a way that provides users with the most useful answer."
That's what they said.
So, there is not artificial favouring. What about natural favouring? What if the sites are coded in just such a way that the algorithms love them?
"most useful answers"? As determined by whom? What if Google considers it's own services most useful?
I am not saying that is what they are doing, but the PR speak is not without the ambiguities.
Of course, one can't ignore that this appears to be a report from the FUD-masters MS.