Copyright infringement is a tort though, so it's down to content owners to sue Google if they feel damaged by this "caching".
I think countries added workarounds for computer caching, allowing transient copies. But Google's "cache" or more of a short term archive, I'd guess they called it "cache" to semantically bypass the issue of it being an infringing copy.
Yes, actually it does. So does AU, US, and CA laws. Or, not expressly, but it does say a caching service must respect recognized industry standards for updating, removing, and excluding content from being cached. That covers HTML meta elements, HTTP caching headers, /robots.txt files, etc.
I think countries added workarounds for computer caching, allowing transient copies. But Google's "cache" or more of a short term archive, I'd guess they called it "cache" to semantically bypass the issue of it being an infringing copy.