It's because EU regulations are largely teethless. If disregard for GDPR lead to closure of Facebook, that would be a different ballgame. Now it is just additional cost of doing business to appease the EU bureaucrats and make sure any issue grinds to a halt in unsustainable EU bureaucratic machinery.

Google, Netflix, Microsoft create so many 'problems' that EU citizens feel compelled to use these products every day and send those companies tons of money?

There are some fairly minor externalities in some of those companies products that we could look at regulating but by and large, it's not existentially problematic.

The 'scary' parts of AI probably haven't come to pass just yet, and I think it might have more to do with privacy than 'biased algorithms'.

Alongside this legislation, the EU should also be trying to figure out why it's using all of those American products instead of having champions of it's own because that's probably a bigger issue in the end.