> So long as their products are free, it’s hard to argue that consumers are suffering harm.

It kills competition since most of them are financed by an unrelated service (Googles ad network) and without competition we get such nice things like randomized automated life time bans, non existent customer service, products that are randomly killed, overly anti competitive licensing agreements (Android apparently cannot survive on its own merits) etc. . Privacy is just one of many many issues.