This will most likely be damaging to the newspapers in the long run. The result will be a reduced proliferation of links to the newspapers, which will cause a lower visibility.
It is not the first time this has happened. I can't find a link right now (somebody care to add one?), but a few years ago one of the big news outlets managed to secure a legal ruling that they had some rights over how people linked to their site, and demanded that Google comply with their demands or remove all links to their site. Google removed all links to their site. After a few days of receiving no search traffi…
"Pay us for indexing our sites!"
"We don't want to engage in that transaction on those terms; if you wish, we will stop indexing your sites"
Then the French gov't steps in and effectively legislates that Google is legally obligated to engage in a transaction on the terms of the other party (and pulling out of the transaction is not an option). As I recall, the end result of this extortion was Google paying ~$70 million in what was effectively a protection racket (where the nominal purpose was to set up a fund to help French newspapers enter the digital age).