Frankly, I don't see why any business should be competing with intelligence agencies in their "market".

It's quite reasonable that our spy agencies which we create for spying have a monopoly on it - just as police should have a monopoly on putting people behind bars and not letting them out, IRS should have a monopoly on collecting taxes from people, and FDA has a monopoly on proclaiming which drugs are safe.

If Facebook or Google are gaining some equivalence in capabilities to what the intelligence agencies are supposed to be doing, that's a bad thing and should be stopped.

Are you suggesting EU intelligence agencies should abide by the GDPR?

They already abide by the GDPR. There are exemptions on the GDPR for: national security; defence; public security; the prevention, investigation, detection or prosecution of criminal offences; etc.

I'm suggesting it's a power play from the governments using privacy as an excuse.