Both founders having grown up in communist block countries supposedly had something to do with their aversion. At least that’s what I heard (was working for MS china back then).

Larry grew up in Michigan... a communist country?

(As I heard it, the legend is mostly attributed to Sergey pushing for it, and every time I've heard Eric talk about it it felt there was some disdain there, so I would agree with you that Larry was probably convinced also, otherwise Sergey alone wouldn't have pulled it off.)

And the worst part of a Communism is "planned economy", e.g. the state decides which app/service is good or not.

Surely planned economy was the worst part and not repressions and millions dead under red boot.

the reason behind millions of death because the grain rationing system leaving little to none food for peasants in the 1960s, yeah it's still economical issue.

Bad things happen when the state controls everything.

The US banning a foreign-owned service from operating on its soil (when that foreign country bans many US-based services from operating on their soil) is not a "planned economy". Please don't use low-effort, bad-faith arguments.

There was the PLA hacking gmail accounts in Hong Kong also, which supposedly was why Google stopped playing nice in the first place.

It's a rogue state after all.