[zerox7felf]

Because innovative != ethical! Hopefully it would stifle innovation that depends on tracking users and platform lock-in. I think there would certainly be space for innovation beyond that, possibly with even better conditions for competition as it would be easier for users to move between platforms.

[jokethrowaway]

What if as a user I'm happy to get a free service and be tracked?

[Smaug123]

Governments exist in large part to solve problems of the form "all individuals are incentivised to take actions which, when universally taken, are detrimental to the commons".

[Leherenn]

I am not sure it is a problem for most people though, if anything I believe most people would not like the alternative.

If the choice is between being tracked, which results in many things being free (as in beer) with otherwise almost no practical visible consequences for most people (different ads?), or having to pay for each and every service but no tracking, I think you would face a huge backlash if you forced the latter.

A solution could be to have free access if you accept tracking and pay otherwise, but I believe this is illegal under GDPR.