Secondly, they don't really have a monopoly from my perspective. I don't know many people that use Facebook-the-product for its intended purpose, that is, social networking instead of selling household items or organising ride sharing. And I don't know anyone who uses Instagram (except for one girl on the bus who looks down only enough to make sure she's tapping the post and not some other button on her screen, but otherwise only likes every post without even glancing at it). I guess that might be different in other countries.
I guess I also saw it differently because it feels like a free speech argument: why does FB have to give competitors a voice? But it's not about having to give someone a voice because they claim it should be a free (as in freedom) platform, it's for maintaining competition.
I think I've changed my mind. As you see I'm still thinking this through (out loud) but I suppose it should indeed be different entities, even if the to-be-separated ad business is selling "real estate" on Facebook.
Disney banned Netflix ads on its streaming service. How is that not the same thing? The monopoly argument crumbles when you realise how big Disney is compared to Netflix.
[0] https://www.cnbc.com/2019/10/04/disney-to-ban-netflix-ads-fr...
Not organised by small businesses, it has nothing to do with any company. Just some dude(s) (or gal(s)) that run(s) a group called "ride shares between Cologne and Koblenz" where people post when they'll be driving, or "fleamarket Cologne" where people post their stuff (not sure how this isn't just a bad/limited replacement for ebay, but that's what I see Facebook being used for).
As for replacements for the other parts of Facebook/Instagram, I don't know because I didn't switch away from using Facebook or Instagram: I've never used it. If you mention what you use it for, I can tell you how I achieve those goals instead. If it's keeping up with people, it's by meeting and chatting. Or if they don't have chat, then email and meeting. Or if you mean how to share pictures, I guess that would again be email or chat.
Of course, I'm fine with doing something about Facebook (I don't mean to turn this into a whataboutism), but to me this is not the biggest abuser of power at the moment. Google knows practically every aspect of practically everyone's life over here, which is way scarier than Facebook knowing with whom I talk.