>This feels more like a shakedown from French newspapers with backing from the France government rather than fair business compensation.

Not saying Google is right or wrong in this case but;

EU have had problems with US tech giant for years with their aggressive business practice and Tax avoidance. Aggressive or ruthless from European perspective but the norm from American's POV. Now that even US government are on their side, EU or France in this case are taking every single opportunity to squeeze them.

I see it as political power play more than anything else. Google and Apple have been showing middle fingers to government and regulators around the world for years. They have been waiting for the political climate to act on it.