I'm not fully understanding the Australian media's issue with Google. Google shows links or a small snippet of news articles, a user may decide hey I want to read that and clicks the link and goes to the media outlets website to read more. This is driving traffic to media websites? If it wasn't for Google surfacing the content, unless the user was a daily reader of that specific media outlet that user would never of…
That is how it would work if Google presented simple search results, like they always have. But their snippets are different: they try to extract an answer to the users actual query. So if they’re doing their job correctly the user actually won’t visit the site, because they will have been given all they need by Google.
I’m undecided about whether this law is actually a good idea, but I can see the point. A contrived example: I want wonder “how much damage was caused by last week’s hurricane?”. A newspaper might have assigned a reporter to covering the hurricane, and they’d call up various local authorities that can estimate this kind of thing, then write an article containing that info. All salaried work that cost money. Along comes Google, grabs the relevant paragraph, and shows it on my search results page. No need for me to click, no money goes to the newspaper.