How is it going to "foment diversity" ? it's not. You want to "foment diversity" ? Remove some of these stupid regulations and make France more business friendly. Forcing google to display 3 of its competitors on its search engine page isn't going to create jobs or new startups in France. Google is the least of France's problems. Its politicans on the other hand.
There's nothing preventing a French company from producing their own equal or superior search engine - other than competence or will.
For all you know, there's plenty of "equal or superior products" to [anything] out there. You've just never heard of them for reasons that have nothing to do with their quality.
So the choice is, clowns or crooks. Pick at most two.