Once they have your attention, then they can sell ads.
Google News is an attention winning product, and it feeds into their broader ad ecosystem even if they don’t monetize it today.
And the French law applies to all companies in Google's position, not just to Google. So the there's still nowhere better than Google for users to go.
The only losers in this deal are the French news agencies, and perhaps French users if you consider them worse off for not finding French news sources.
So French users go to French media sites. I'm not really seeing the big loser here beyond Google, which is exactly why they've fought this so hard and for so long (despite, by your take, making no money on it).