They took a course of being completely dependent on the benevolence of Google. That is a big risk, but maybe more common than you would think. I mean, Apple can kick your app out of the market, yet a lot of startups depend on the app store.

Pingjam seemed to have gone the extra mile, by seeking close cooperation with Google, also in terms of EULA. I can imagine them feeling hard done-by Google.

I must admit am not in any position to judge the Google license agreement and their possible non-compliance.