"For AdWords and related programs such as Google AdWords Certification, if we receive a notice or otherwise have reason to believe that an advertiser's or client manager's site is infringing, we may remove the offender's advertising in compliance with the DMCA."
So, they already do this. The question is, whether or not the VLC team has submitted a complaint that meets their criteria.
My guess is that this is something the FSF should really get involved in, except they are probably too busy taking money from Google to talk up how "open" Android is to be bothered by a little pro-bono work from a hard-working group of OSS devs.
Google refuses to comply to some French law about logs retention because their servers are not in France. Why would it be otherwise in the opposite situation?
The problem they can't solve, I argue, is to ensure that people violating copyright law (of some arbitrary country) can't advertise with Adwords.
Edit: Look, I can do retrospective edits too!