Google has to push back to stop this happening in other countries. In any case, they can negotiate with price on SERP results ads and on the ads they no doubt place on Murdochs sites. Things will balance out if it does go ahead.

I wouldn't be surprised to see Google leave briefly to fully illustrate their power in the marketplace - I doubt it's an empty threat. If I ran a AU based business that's dependent on Google I'd be emergency planning right now.