No
Law is not defeated.
It means that Google, due to its market power, got the clips for free. Everyone else might be asked to pay.
It's actually anticompetitive.
I totally understand the intention behind it - you see what the death of good media and rise of clickbait/shill articles did to US and UK. The other EU governments are terrified their own information landscape might go similarly downhill - and all you have left is spam, lies, propaganda and corporate ads hidden as articles.
It's just that the approach taken here is the wrong one. They are trying to fix something but shoot at the symptoms, not the cause.
It's also true that Google is exploitative in how it uses its ad + News Power (Look at the content preloader discussion) so clearly it's not aiming at the innocent. It's just not the right tool for the job. Probably because so far no one has figured out how to fix this...