As a European, I have to say: The sooner non-innovative media companies die, the better. Replacing Google is hard, but replacing Google News, really is not. Ignoring reality and trying to lobby the EU to an absert extent will harm their business in the long term.
There are organizations with working business models like the German public stations[1] (ARD, ZDF, DW, arte and others), which are publicly funded and thus prepared for the future. These are even trying to innovate, e.g. by providing textual content for the web or by trying for years to create a single unified Netflix competitor for their video content, but they are being shut down with lawsuits from companies like Bertelsmann, too (in a similiar fashion like the story about the public weather data, recently here on HN).
I think at this point these companies have to wake up and realize that their old model is lost. I see four options for them:
1) Get in line and try to find shelter within those publicly funded systems. Use your lobbying budget to accomplish that.
2) Be the best. Find a niche. There will always be room for a few remaining.
3) Team up and create your own system.
4) Die. But don't slow everyone down endlessly trying to rent seek based on the working competition or the threats form US companies.
In the end, I don't see Europe losing anything to the US here, but instead the publicly funded organizations surving. When I look at an other market providing a human right, namely healtcare, I don't see Europe being worse off in the end at all.
[1] These stations do have their own problems: Endless layers of management and administration.