In practice it may negatively impact on the quality of search results, even though in theory their algorithm including more "difficult to fake" factors should result in it being more durable.
If a competitor gets ahold of their exact ranking algorithm, that's a huge piece of the formula for building a search engine that is as good as Google Search at finding what someone's looking for.
Yes giving up the source algorithm would be a loss. Google have seen this coming for years and have been building the moat so even this information shared wouldn't really help a competitor take any significant chunk of their business in the short to medium term.
If it's not public, then this problem doesn't exist.
Just like the output of the recording devices they installed on Air France planes in business class. Those were never turned over to French companies.
Google are pretty obviously not paying tax like a normal company. To put that more explicitly, they are probably committing massive tax fraud, taking billions in local money and not paying tax on it... that isn't unusual for a mega corporation, and they need local government to continue cooperating. So, the UK gets a big Google office, it's government keeps quiet. I guess France needs one too...
Google explicitly decided not to play ball in mainland China years ago. It will be interesting to see the reaction if this goes through-- both exposing ranking algorithms and pulling out of France seem pretty improbable.
Apple 2015 http://qz.com/332059/apple-is-reportedly-giving-the-chinese-...
Microsoft 2003 http://news.cnet.com/China-to-view-Windows-code/2100-1007_3-...