Maybe because of population growth. Food and car failure is directly linked to mass deaths and diseases, potentially decreasing the population, free data flow is linked to better business decisions, and therefore wealth for starting families, potentially increasing the population.
So if population growth is your priority as nation, it could make sense to allow free data flow if you ignore potential long term side effects that could counter this.
The downsides of free data flow and the permanence of personal data are mostly affecting the mental health of people which could result in more deaths from drug abuse and other self destructive behaviors, or even civil wars long term.
This of course could contradict free data flow as a viable strategy for long term population growth.
A battle between short and long term politics, with long term politics being clearly at a disadvantage because they're less obvious and harder to predict/measure, and harder to sell in political campaigns.