... are you seriously suggesting that companies should adopt the moral outlook of cowards?
Let's RTFA, here: Google scans its mail servers against hashes provided to it of CP known to law enforcement, an account got flagged, the police were called, they found the account holder had a felony record for sexually assaulting an 8-year-old child, a warrant was obtained, and additional incriminating evidence was found amongst the account owner's possessions; the owner was arrested and will be tried in a court of law. Due process, so far as two press articles can tell us, appears to have been followed.
And the case itself aside, quite frankly companies are too sociopathic already without people encouraging them to ignore the evils of the world because of the possibility that somebody, somewhere, might be a Scary Pedophile-Terrorist Bent On Revenge (TM).