It’s going to be interesting to see how these types of bans play out.
One alternative to bans could perhaps be if the EU created an IdP or something similar, with a fee for each authentication request, and then forced all commercial services within Europe to use it. I’m not sure if the fee should go back to the user or be paid as tax to the government, but either way, it would change the incentives around connecting traffic to you and making profit from it by harvesting data or steering recommendation engines.
Because I do think there’s nothing wrong with the government doing this, just like in the physical world.
And in some cases, we might prefer cheap authentications… like when posting comments, to avoid trolling/manipulation/bullying. Perhaps when doing “writes” on the internet, if there’s a robust way to identify that type of traffic.