[avmich]

"...demanding... and be paid for it"

I'm suspecting it's more important that newspapers are to receive money (for services) than that they demanding to be indexed (requesting service). It's newspapers providing service to Google here, in the form of interesting data which attracts viewers.

[nybble41]

Google was happy to refuse the "services" these newspapers were offering, by removing them from their index. The newspapers balked at that—because they get more value from being included in Google's index than they stand to "lose" from having Google show visitors just the headlines with links to the original sites. So they brought the government in to force Google to purchase the newspapers' services whether they wanted them or not.