I'm not saying the ban is about that, but it does accomplish something in that direction, and we need more bans that are explicitly about that.
Ultimately though I don't think regulations about privacy and data handling are sufficient. To go just one level deeper, a large proportion of the data in question should not even be collected, regardless of how it's handled or who it's shared with. But many of the problems are even deeper, and have to do with things like how big companies are allowed to get and how much venture capital is allowed to destroy things that work by funding things that don't.