I know this is a deeply unpopular opinion, but I don't get humans sometimes. Why does this need regulating? Am I the only person who just doesn't use services which do this?
This is so obviously a free-market problem. The reason these ads exist is because there's a significant percentage of people who are happy to put up with them and those people mean that products can be better funded without requiring subscriptions.
If people want to use products with unskippable ads, then who cares? This "I want X without Y" regulation is so stupid. You can't have X without Y. Just go buy Z product and stop asking regulators to find ways to keep you coming back to products of consumer-hostile corporations.