Yes, that is true. Google can uninstall application from any Android phone, if deemed critically important. Rich Cannings, Android Security Lead today in a blog post explained about this feature.
In cases where users may have installed a malicious application that poses a threat, we’ve also developed technologies and processes to remotely remove an installed application from devices. If an application is removed in this way, users will receive a notification on their phone.
The remote application removal feature is one of many security controls Android possesses to help protect users from malicious applications. In case of an emergency, a dangerous application could be removed from active circulation in a rapid and scalable manner to prevent further exposure to users. While we hope to not have to use it, we know that we have the capability to take swift action on behalf of users’ safety when needed.