Pardon my German, but that is utter and complete Büffelscheiße on multiple levels. Firstly, how does data protection and privacy law prevent you from using those tools? Secondly, the German law in these matters is not a hindrance to innovation, that is a lame excuse: If the only business model you can come up with is grabbing as much data as you can and then sell it to advertisers, that is not innovative at all.
I think the problem more has to do with a general resistance to change that is very common in German companies and public institutions. "Was der Bauer nicht kennt, frisst er nicht", as we say in Germany ("What the farmer doesn't know, he won't eat"). Large institutions and bureaucracies develop a huge inertia as they grow. The three rules why things do not change: 1. We have always done it like this; 2. We have never done it like that; 3. Once we change this one thing, where does it lead to?