If you take out Facebook another company would just fill the void.
The only solution is to make the user the owner of their own personal data and then allow the user to decide if that data can be used or not. Maybe even have the social media companies pay for using and selling data to advertisers.
Another idea is to tax storage of personal data. Which would mean companies would save less data to reduce costs and use the data they have more efficiently.
Still, both of these things would mean a radical shift in thinking and would decimate the value of companies like Facebook overnight.
I don't think the US is willing to risk dismantling facebook, Google and other tech companies even though they've broken every privacy law in existence.
As far as I have read, other governments in Europe are preparing similar legislation and I think Canada too.
For Europe there is another reason to take down facebook. The EU wants to create an environment where European big tech companies could be competitive.
They want to rely less on American and even Chinese technology companies as they have in the past.