So Google has to act, in order to retain their trademark under US law (although demanding that the meaning and usage of the word, comply with their desired definition is idiotic)
The language council simply wants to post the list of new (interesting?) words that have been tossed around. Rather than spend time and budget on a silly fight with Google, they simply scratch the word and go "meh, the word will survive not being on our list"
And the fact that this is news-worthy means that the word will already be getting a lot more attention than it probably would have otherwise.
Language council wins by TKO.
They've also claimed victory:
"If Google knew how language works, they would've known that they don't get to define the language, and the word will spread as a result of this debate. The word wins, not Google" (taken from: http://www.svt.se/kultur/amne/sprakradet-stoppar-ogooglebar-1 )