"Digital platforms must participate in the code if the Treasurer makes a determination specifying that the code would apply to them. The Government has announced that the code would initially apply only to Facebook and Google."
This means they can't pick and choose. They are either a news platform or not. That's why FB is warning us they'd get out of the news game entirely.
https://www.accc.gov.au/focus-areas/digital-platforms/draft-...
I read this book [0] recently, and I was astounded by how widespread it is around the world. The Duerte chapters are an eye opener.
[0] https://www.amazon.com.au/This-Not-Propaganda-Adventures-Aga...
Day 1 for example, it supposedly won't effect Reddit. But if FB/Goog pull out, Reddit will be the next target really quickly. Repeat for anything relevant until it hits something that hurts.
But if they do call the bluff and pull out, then I don't see how it helps the papers apart from being able to set the narrative on their own platform and limit discourse (comments/critiques) off-site. If you can't share something on Reddit etc and talk about it, then you have to comment on 'approved' venues which will help bolster any cases they make by shutting out dissent. They are probably hoping this is still a win as others will go to the source directly, and pay if they have to because now there will be no other option.
In short they're used to the pre-2000 era and never adapted. They think with the right laws we can turn back time.