True, and I absolutely support regulation where necessary. I strongly support regulation that require companies to handle user data in a confidential manner, for example. But that doesn't make all regulation automatically good; I strongly oppose regulation that requires companies to share sensitive user data with anyone who asks for it, for example. And forcing a company to do business it does not want to do, seems unreasonably oppressive.
In this particular case, if Google barely makes any money on linking to news sites, and the law says they need to pay a lot of money to link to those sites, then the obvious business decision is not to link to those sites at all, which will likely hurt news sites, because they get less visitors.
There are levels of regulation that will hurt the market, rather than help it, and this sounds like it might be one of those.
I recognise the right and need of democratic governments to regulate markets, but I also recognise that this can turn the government into an authoritarian seat of power, that serves power, rather than the people. This democratic accountability needs to work, needs to be used, needs to be obeyed by the government. So that makes it good that Google shares with the Australian public what's going on.