While it doesn't test for understanding, it absolutely tests for knowledge. Take the medical profession. There are many easily googlable facts a student has to know without google. For example a list of symptoms for a diagnosis (or better: possible diagnoses for a list of symptoms). It's not the only thing, but it's part of the education.

Or in physics (my field), I do want a student to know U=RI. Not google it. Not look it up. I also want them to be able to transform it to U/R=I.