Remember how many times MS did taint their "good name"? Did it hurt them?
What do we have know? Moms, dads, grandmas and grandpas who thought MS was a "good name" and who hence bought Windows phones who are pissed off at Google, telling their kids / grandkids how nasty Google is.
And their kids / grand-kids are answering them:
"I told you to buy either an iPhone or an Android phone mom/dad/grandma"
and having a good laugh.
Yes, it most definitely did. Many developers left Microsoft platforms for Linux and later OS X, for various reasons but including Microsoft's actions. (It was my reason.)
Stories like this harm the Google brand, and that is never a consequence-free thing.
I don't see Microsoft being harmed much by all the blatant FUD anti-Google campaigns (most of which backfired). Still a whole bunch of Microsoft fanboys commenting that they'll never use a Google product again and switching too all Microsoft products following this user agent blocking news.