They should just block all Google services in Italy. Replace Google with a page that just says "due to recent decisions of Italian courts, Google find operating in Italy too expensive." Leave it a week and see what happens.
Yes, I am well aware of Australian history. The English sent its overflow of convicts to an island paradise, realised their mistake and many of them moved here themselves. Lots of immigration too.
The AC might have been spouting ignorance about other matters, for example there are a number of people who believe that a Queenslander (aka Assange) "stole" a bunch of embarrassing documents and could be confusing him with the rest of the Australian population.
As I understand it, the Productivity Commission are mostly economists. They provide reports on questions requested by Government. They are occasionally listened to. They are more useful for ignoring and putting spin on the results for the electorate.
The problem with this is that he's not actually in the US and the world is watching. Even if the US is ok with looking bad by making up charges, Sweden also has to be ok with looking bad. They have to make up something that will stand up to scrutiny.