The simple answer to this and all consumer regulation related questions is information asymmetry. The service that wants to monetize privacy or other sensitive aspect of customer life is never disclosing information in a way, where customer would easily understand all the consequences. People do not speak Legalese, they do not understand technical details and they generally should not be expected to be experts in T&Cs. For this reason they choose the government that acts on their behalf and levels the playing field by defining the terms that are acceptable to majority.