Earlier quoted context omitted.
A free market only ideally represents the needs of people if people in fact express their needs. Aggregating user data and using it without consent does not fit that model. There is no obvious reason to believe tracking users "represents the needs of people".
Thanks to data collection and aggregation, the ads are targeted better, and thanks to that, the sites are earning more, and thanks to that, small scale content creation is a viable career. Now that ad revenue will be most definitely cut down to almost zero, a whole sector of small content creators will be destroyed and move to centralized platforms such as Facebook will be encouraged (because only on centralized plat…
Revenue might be lower. That is not in itself proof of a worse outcome. Maximising numbers like revenue or GDP is not good per se. Neither is maximising the amount of content created. If you want to know the trade-off is worth it you also have to look at the costs. The impact of tracking on privacy is not zero. The impact of ever more attention grabbing ads is not zero. The impact of persuading us to buy ever more stuff is not zero.
Also, the vast majority of small scale content creators are hobbyists.