Neither Google nor the driver gets to make that choice. The police decide whether to refer the incident for prosecution and the prosecutor decides whether to pursue it. Google saying they don’t want to pursue it carries only as much weight as the police and prosecutor give it.
If Google refuses to provide video and sensor data, it becomes difficult to impossible to prosecute.
If they do this in some but not all cases, that lends to suspicion that the denial cases could show egregious misconduct on the part of the Waymo software (I.e. avoiding self incrimination).