The issue is the Internet has provided bad actors (including rent-seeking entrenched interests) with the ability to anonymously, cheaply and pervasively spread lies and propaganda. They can precisely manipulate emotionally vulnerable segments, bury informed discussion, manipulate Overton windows, and subvert law and policy making for their own purposes.
Individual choice is of almost no help in managing the problem.
If that's your critique of the private sector, what about governments? I agree that those things are problems, but we're not comparing to an ideal state -- we're comparing to another deeply flawed thing. At least individual choice gets me something in the private sector.
For me “bad actors” includes all bad actors—-whether commercial, governmental or otherwise. They are all potential snake pits and they need to be scrutinized. :-)
But they are what we have to work with. To me it is irrational to refuse to use part of the toolkit (laws and regulation) because ideology.
Mandatory radical transparency is probably a part of any effective mitigation strategy.
We have to be realistic. The “system” cannot be perfected, and trying will cause horrible unintended consequences. It will always be gamed. There will always be charismatic sociopaths and selfish assholes. There will always be injustice and suffering.
But we can try to use the available tools judiciously to keep their negative impact down to an acceptable level.
Individual choice is of almost no help in managing the problem.