The US giant announced Wednesday that it will close Google News in Spain on December 16 because of the law which takes effect in January and forces it to pay news outlets whose content it publishes, even if in snippets for aggregation.
"The big losers will be media firms themselves, which, with the disappearance of their news from the search engine, will lose traffic to their pages," Spain's web-surfers' association, Asociacion de Internautas, said in a statement.
The law has been dubbed the "Google tax" in Spain but it would also apply to other big web companies with pages that reproduce and link to news content, such as Yahoo.
The Spanish culture ministry said it would press ahead with enforcing the law despite Google's move, insisting it "does not obstruct freedom of information".
"This situation will cause many closures" of Spanish internet firms, the president of the web-surfers' association, Victor Domingo, said.
The Association of Spanish Newspaper Editors, known by its Spanish-language acronym AEDE, appealed for Spanish and European authorities to find a solution.
Google is the "real doorway to the Internet" in Spain and the closure of Google News "will without a doubt have a negative impact on citizens and Spanish companies," it said in a statement Thursday.
"We always favoured negotiations with Google to reach agreements that are profitable for the two sides in different areas," it added.