I'm Australian, and I created an account just to comment on this issue.
Imagine Google News or the Facebook news feed were normal news websites. If you count their traffic as the amount of times people went to those websites just to read news, their raw traffic would dwarf any other news website in Australia by an order of magnitude.
Journalistic websites have editorial standards, and at least some relationship and commitment to the truth (even the Murdoch ones). A news feed, while algorithmically generated, is for all intents and purposes the front page of a newspaper for many, many people.
There is no editor of a news feed. No one checks that what bubbles up to the top passes basic fact checking standards. Most importantly, there's no consequences for misinformation and conspiracy theories being on the same front page as a story about some construction disrupting your commute tomorrow.
The main gist of the new code of conduct, to me, seems like the ability for news websites to collectively bargain with a multinational corporation that essentially controls the news landscape in this country. We aren't the USA. Our news websites aren't the New York Times and the Washington Post. Unfortunately, the two biggest are owned by fairly evil companies (Channel nine and News Corp). Rupert Murdoch himself controls 70% of the Australian media landscape. When he dies, however, this law will still exist.
We've seen the consequences of a journalistic landscape that exists solely through social media without any significant independent news sources in Myanmar in 2015. Australia won't end up like that, but allowing independent journalism to wither on the vine distorts our ability to participate in democracy.
As a collective, if every single news organisation decided to go on strike from Facebook or Google tomorrow, the amount of money advertisers would pay them would drop off a cliff. Google is scared by this because they know that the value they give to the consumer is the sum of Australian journalism, a tasting menu of all the best stuff that newspapers have to offer. Why, then, shouldn't that sum itself have the ability to bargain against Google and get itself a better deal?