This law was pushed by News Corp and is exactly the response they were hoping for. Their goal is to be the only game in town, because they know they can survive without FB and Google, and no one else can.
It was only about 3 years ago that I found out lots of people rely on Facebook for their 'news', which puts me in a bubble of some sort, but it's still a bewildering state of affairs.
News Corp has an impressive series of failed things they “knew” they could do better than everyone else in digital media.
I wouldn't expect them to be any more successful with a facially neutral legislative framework that they think they can work better than anyone else.
Do you think the politicians are just feigning surprise/insult here in response to Facebook's actions as that's what would be expected of them?