Yea, not much I could do in the situation. I didn't want to raise any flags because I didn't want it get out in the public and I especially didn't want the company I was working for at the time to know I was interviewing elsewhere.
It was very shocking why they were asking very specific technical questions regarding how the company I was working for at the time was addressing. Let's just say it relates to the infamous Uber-Waymo case. That was my red flag, about 30 min - 1 hour into the whole interview process.
I do have a copy of an email about the newest policy governing competitive intelligence gathering from Salle Yoo (head of legal) from late august 2017. Skimming through it, what you described would be in blatant violation of probably half of the document. Not to mention that it flies in the face of basic human decency.