Sure, and Pichai is saying it doesn't make good business sense for Google to spend a lot of money developing a mobile OS and then give it away for free unless they can use it to push their other products, like search. Google's business model was to give away the OS for free, but require Google apps to be bundled (in exchange for play store access).

So I have nothing against the EU decision, but Google's response is just common sense. They aren't a charity. If Google can't bundle their money makers with the phones, that kills the current business model and leaves them footing the Android development bill while getting nothing in return. So, they need a new business model; making Android proprietary is an obvious option.