Wouldn't this be bad for the social media? Imagine the drop in users. It will become even more of a walled garden, at that point it's bound to get too boring for some remaining users and even more of them will leave…
During the big "crisis" of social media (Trump, Brexit, Cambridge Analytica, Russian trolls, etc.) there was an idea that these giants should switch from an ad-based to a subscription-based business model. This was discussed internally as well. My guess is they decided against it because that wouldn't pay off for them, and I doubt this would as well.
And don't forget it's not only in Silicon Valley's interest for US Internet to colonize the whole world, the US state also wants everybody on Facebook and Twitter for propaganda / regime change reasons.
So if you ask me, I fully support more such limitations, let them shoot themselves in the foot. I don't have an account on any of these anyway.