The problem is that people are so used to the notion that everything is “free” that many are convinced that online services should always be free and balk at the idea of paying for anything.
A huge part of that is that most people don't consider privacy concerns to be a cost. All they factor into their evaluation is whether it costs them actual money.
That's... not what this is about, though?
This isn't about mandated reporting, it's about funneling impressionable people towards extremist content.