Like in the banking industry, they know that this type of regulation kills small competition emergence and risk of death by lack of innovation. Politians know t

Like in the banking industry, they know that this type of regulation kills small competition emergence and risk of death by lack of innovation. Politians know that. So why are the Europeans playing that game which is against their interest (having local powerful actors)? Why don't they simply vote Russian/Chinese style laws? (Data must be hosted locally and accessible by the government agencies if requested).