Network effects are real. It is hard to convince people to move over to your platform if the selling argument is 'not quite there yet, but we got you covered on the minilib front, plus it's less usable because of our weird interpretation of our own data protection laws'.
Yes and my perspective is that GDPR has harmed EU startups and helped US companies by virtue of them being incumbents and having the resources to dedicate to compliance. Probably can't be fixed as easily now because of corporate culture around standards like SOC2 and ISO27001... Which I think are more harmful to security than helpful as they create complacency and hinder progress by creating barriers.