Google could have stopped all this be immediately kicking off all european newspapers from every google service they have and reinstating them only after they fill out and submit the form that they allow google to use their stuff without any pay.
Instead google only threatened to do this and european newspapers thought they have some power.
The only power they have is making and breaking european politicians, hence current mess.
They did exactly that when germany introduced the "Leistungsschutzrecht", which was pushed and lobbied for by all major german publishers. Needless to say they all agreed to offer their snippets for free when Google present them with their options.