Earlier quoted context omitted.
Link to the new legislation or description thereof?
Concepts paper and draft legislation published by the ACCC: https://www.accc.gov.au/focus-areas/digital-platforms/news-m... HN discussed this when the draft legislation was published: https://news.ycombinator.com/item?id=24006150
The first attempt was in Germany. The law said search engines must pay newspapers to index their content. However it didn't specify what the price should be, so Google simply negotiated a fee of zero and the law was in effect nullified.
The second attempt was in Spain. It is the same law, but this time they added a clause that said the fee can't be zero. So Google News was shut down in Spain and the law was in effect nullified again.
The third attempt is in EU and Australia. In Australia it's the same law, but this time it says the fees both cannot be zero and that you aren't allowed to shut down your service. In the EU the assumption is Google can't pull out, so if a Spain-style law is passed at the Commission level then Google have to pay up.
What comes next? My guess - either this is the point where Google breaks or they pull out of Australia completely. They did it on principle for China, once, and that was a drastically larger market. But it's not the same company it once was.
It may be that Google/FB just decide indexing news isn't worth it. Bing can serve loss-making news queries. Or someone would set up a news-focused search engine in the USA that doesn't have any legal presence anywhere else. Indexing news is a much more tractable problem than indexing the entire web especially with advances in AI-driven NLP. However, there's the question of how to get people to pay for it.
edit: apparently the law is a bill of attainder and names who it applies to specifically, note these laws are unconstitutional in the USA (at least theoretically).