This even applies to federated social networks like matrix - a EU server can't easily send messages containing personal data to US ones without at least signing an contract with the required "standard contractual clauses" (technically an contract is always required).
It seems like people here tend to think of ad profiles as the only data that matters, but Facebook "collects" messages you post and photos you upload, just like most email services "collect" all your emails. This kind of data is far more sensitive than your ad profile.
Yes and no.
certainly people share and post sensitive stuff on Facebook. But Facebook knowing I've visited certain categories of websites because those sites have a Facebook pixel or they're running a third party widget that has a FB pixel is historically a much more opaque form of data collection.
The cynic in me would say: store all data on EU soil ;)
For one thing, Facebook allows me to stay connected with my family in another country. I'm infinity grateful to it for that, and I'm ready to exchange getting this amazing free service for my very personal information. No one stole this data from me, I'm happy with this arrangement.
Same with other the services: Google's, amazon, and what not... Hell, the progress all these amazing services brought made my live on earth a heaven really (not sarcastic)!
I'm personaly not afraid of big tech, imho they compete with each other, they rise and fall, let them be. I'm afraid of regulation that incentivizes lobbying, kill competition, and create long term monopolies.
Otherwise, in the Middle Ages, “European kingdoms don’t fight wars, they just conquer one another”
Anyway, if the competition is not an ends unto itself it would seem a more direct argument can be made.
I wouldn't care if I was served isolated display ads, even targetted based on my entered data.