Yeah, this is a big problem. The EU solution would be to fund it with taxes but obviously that won't work everywhere. Maybe a few megacorps could run social media as a loss leader but it's hard to imagine why they'd want to.
That doesn't seem to be anywhere in their plans, unless you're accusing market regulators of being taxpayer-funded (in which case, guilty-as-charged).
Currently, the only EU solution has been demanding interoperability of platforms. How that's done is up to individual companies, unless they use it for anticompetitive purposes.
I think the Doctorowists would say that interoperable shit is still shit. If they want social media with no user cost, no ads, and no tracking of any kind... that boxes them into a very small design space.
