News publishers are struggling to make money on the internet, but they still have political influence. So the idea was to force Google to share some of its profits by forcing it to pay license fees for the snippets on news.google.com. Lobbyists claimed that this would only be used to target Google and smaller services needn't worry.
What happened of course, was that that Google discontinued the service in the relevant countries and the number of news readers plummeted. The publishers gave Google an exception to get their visitors back. Now the only result is that anyone from bloggers to other news aggregators is facing legal problems. They can contact the publishers, but are usually ignored.
As a result, the legislation only cemented Googles dominance.
Ask five economists and you'll get five different explanations (six if one went to Harvard). -- Edgar R. Fiedler