Earlier quoted context omitted.
American here; I just don't quite understand the premise. "Here is what you are giving us, and here is what you're getting in return" seems perfectly legit to me. If this interpretation of the law is correct, then the government is essentially saying the "in return" portion has to be eliminated. Which seems to be against the idea of trade.
One of the points of the GDPR is that you cannot make usage of your service contingent on giving up your privacy, unless your service very specifically requires the user to give up personal details in order to it to even function. Strava is a good example, it does not work without GPS position, otherwise it cannot track your bike routes. But Facebook does not require tracking to work. It does not require you to give…
The whole point of FB is for people to exchange data about themselves with their friends and family! If people don’t share any data or just fake data FB doesn’t work.
For them to offer their service they also have to make money, so they run ads to do that. And to make the ads useful to people they need data for targeting!
And now they allow users to either agree to this deal or download their data, delete Facebook and do whatever they want.
Simple as that