It seems their actual policy is "the policy of Primary Local Usage":
"Under this policy, the English Google Earth client displays the primary, common, local name(s) given to a body of water by the sovereign nations that border it. If all bordering countries agree on the name, then the common single name is displayed (e.g. "Caribbean Sea" in English, "Mar Caribe" in Spanish, etc.). But if different countries dispute the proper name for a body of water, our policy is to display both names, with each label placed closer to the country or countries that use it."
Which basically means "multiple names until all bordering countries agree on the same name", if I'm not mistaken
"Under this policy, the English Google Earth client displays the primary, common, local name(s) given to a body of water by the sovereign nations that border it. If all bordering countries agree on the name, then the common single name is displayed (e.g. "Caribbean Sea" in English, "Mar Caribe" in Spanish, etc.). But if different countries dispute the proper name for a body of water, our policy is to display both names, with each label placed closer to the country or countries that use it."
Which basically means "multiple names until all bordering countries agree on the same name", if I'm not mistaken