An implication of this “banned users” data sharing is that this data exchange must be overseen by regulators, to enforce equal access to competitors to this data and also that companies drop people from the “banned users” database after some time, not penalized for life except in rare cases.
I would argue that most users’ petty behaviors that lead to banning do not deserve to make them pay for it the rest of their lives - and that there are rare exceptions who do deserve to be banned for life because certain users’ behavior is so egregious.
Also, consider cases for jurisdictional banning and global banning. Some behaviors are not allowed in certain countries. Take a gay couple kissing in a car in Saudi Arabia - should this couple be banned? If so, just if attempting to use services in Saudi Arabia, or globally? These are serious and important considerations.
the gov't can require that each company has an appeals process, which can be brought to a court if the banned user decides that it's worth escalating.
In fact, i think a general, low cost court process for digital service providers would make for a great consumer protection, but still allow digital services to be flexible in how they want to provide. For example, google can still ban people, but the user can appeal, and if the user is unsatisfied with the appeal, they can go to court (without costing exorbitant amounts of money).