I agree that it seems like the wrong word. "Feudalization" might be a bit closer to what's clearly meant, but still not as close as I'd like. I'm sure the intent is not malicious, but it still seems ironic that OP kind of promises one thing and then delivers another while complaining about that very same thing.
> the process of renovating and improving a house or district so that it conforms to middle-class taste
In this case, it's making the internet conform to Google's taste. Seems to be an appropriate use of the term, even if in the more recent sense we think of it as displacement of people or local businesses.