> incentivize local companies to come up with alternative solutions.

Living in a country where local social networks are more popular with general population than foreign ones (Russia), I'd rather prefer FAANG. "Local companies" may sound good because the word "local" has some nice connotations, like your "local store" or "local coffee shop". But in reality, "local companies" do all the bad stuff that Facebook does, and also go above and beyond to cooperate with the state against the protesters or any political dissidents. And they're also not as good at writing software, so these networks have significantly worse design and a lot more bugs.

There are millions of example where people want to solve a problem, think that they will be able to do it with government regulation, and end up with a situation that is much worse. But even among them, this is a case where it could only make situation worse. And much, much worse.

Or ban it from iPhone for one or two versions so they stop this one tracking. Then repeat often enough that people start thinking it is uncertain that FB/WA be available, and don’t require WA to book a doctor’s appointment.