Punishes companies for not respecting people's settings. It's as if I chose to keep my chat history private in the settings, but they would ignore that and share all my chats with the world. Same problem. I find it odd you can't see how it's damaging to the consumers if you're offering them a choice that you then completely disregard.

The law requires that they provide a non-profiled choice. Facebook wasn't punished for providing the choice, that was required. They were punished for not respecting that requirement, overriding the user's choice whenever they thought they could get away with it.

Yes, the issue is forced algorithm-based feeds, where Meta is free to profile as deeply as they want and exploit what should be private knowledge about you. A "most recent" feed (of things you already chose to subscribe to/follow) should be a standard option on any social media app, and the app shouldn't switch back to their toxic algorithm automatically anytime you look away. This behavior itself shows how much Meta wants to control what you see and is extra impetus to require a simple chronological feed option that is selectable as default, and that the user's choice is respected.

IIRC, around 2008-2009, "most recent" was the only kind of feed, and within the span of a couple years, they added their "personalized" feed but would let you switch between the two freely (and the setting would persist), and not much later, the setting would no longer persist.