Nonsense. They are perfectly within their rights to not suggest that people behave in ways that are against the law.

You may not like that it is against the law in many places but (1) legally aggressive companies don't like other companies suggesting their stuff gets pirated and google is a much juicier target than John Doe, (2) it would not help google if Jane Doe brought up google suggesting she download a torrent when she was doing a search to buy the album if Justin Bieber and pirated it instead.

This is just a sound business decision by google, not evil.

I don't agree. A simple keyword match does not determine if a keyword result is suggesting that I break the law in any given region. "Ubuntu torrent" being a prime example of this.

As soon as you've completed the word 'torrent' a whole slew of suggestions pops up.

That is correct but the original point still stands.