Woah... Wait a second.
"It doesn't actually show any advertising on the site, meaning that it makes no money from Google News"
By mere logic, companies make money out of every possible service they provide. Google is no holy grail or saint company here. They DO make a profit out of that service. Let me re-phrase it, maybe it will be better understood: they MONETIZE you being there in some other way we don't know about.
We can debate all day long about how much they make and what not, but they DO make money out of that service.
I won't say it doesn't suck they pulled GNews from there because of this law, but let's not paint this as something "evil" towards the internet and/or whatever from Spain's part.
I do feel that content creators deserve money for what they create, and Newspaper sites are, like it or not, content creators just like any blogger out there (even if they copy/steal information from other sites at times -> interesting catch of the law). They just have the resources to fight Google (and win in this case).
TL;DR: let's not pain Google as a saint, cause they're just another Company.
Cheers!