The federal government can forbid any of its employees from using the said service out of security concerns, a la Kaspersky. With network effect this can be an insurmountable challenge. Why should anyone try?
There were services that came before, but they lacked the inertia the current incumbents have. The userbase of Facebook, Google, etc. is huge in the Western world. Even if another company came along and built a great service, I doubt it would see mass adoption due to the massive numbers involved with the current providers.
Banning Facebook would actually give a boost to their productivity, not much to lose there.