I fail to comprehend why this being done across the EU is supposed to make any difference? Its not like there were competing news outlets across the EU due to the language barriers. What after the EU implemented it and it still isn't magically working how you deluding yourself into? We just have to make it international then? No its exactly as foolish as everyone with half a brain has been saying and warning everyone for years and its only hurting smaller EU internet companies (if there are still any at all left under the many disastrous EU decisions).
How is this supposed to hurt smaller internet companies? If anything, it makes people visit smaller sites for original content and content-based rather than targetted, analytics-heavy ad models.
Smaller aggregator companies have a worse position to negotiate from and are less worth the effort from large publishers. This law will have the effect of reducing competion to Google News.
In what way do you envision this helping smaller sites?