Instagram reels and youtube shorts is structured in the same way (from what I can see superficially), though I dont use anything but Lemmy/YouTube. Though the common complaint I hear is that the algorithm is significantly worse on alternatives.
Not sure how this meaningfully changes anything other than forcing people to use another app that also violates their privacy.
Why not just impose strict regulatory laws on handling of user data and impose fines for everyone who breaks these rules? Oracle hosts most if not all user data in the US so any investigations are already completely possible. Sure you would have to impose the same laws for all (even american) social media sites, but that’s a win for every single person on this planet…