We just found a legislative way to break the Google search monopoly - more countries pass this sort of "pay to play" barrier, and Google says no, and then there's space for competitors.

Wouldn't the competitors then have to do the same thing though, thereby reducing the incentive to compete?

It would bring up opportunity for alternative models for news instead of being tied to search/feed.

There's nothing preventing the news from alternative models now. It just turns out employing a bunch of people to repost tweets isn't a profitable business and forcing other companies to pay them via the law doesn't work any better.

I can't imagine the population of any country would be too happy when google.com returns a "Service discontinued due to law blah blah blah" when they want to look up how to beat eggs.