Australian here. Laws absolutely apply on the internet - if you can enforce them. FB here decided that Australia __could__ enforce this law, and chose to comply with it by not hosting links that the law would require them to pay for. If the LNP was actually serious about "controlling" foreign multinationals or "protecting" local businesses, they would simply enforce the tax obligations for these companies correctly. Note that Newscorp avoids tax in Australia [0], yet somehow they are owed money by FB for the privilege of having their content distributed on FB's graph?

[0] - https://www.crikey.com.au/2020/12/11/news-corp-tax-dodging/