Does it make sense to ask "Why is fascism bad?". At a philosophical level it makes sense to ask this, but most of us would agree that freedom is desirable, because it allows people to develop their life project and be happy, while allowing other people to be happy (or at least try to be). Fascism is the totally opposite of freedom, therefore most of agree that fascism is bad.

Is there a good reason to undermine freedom in this case? I don't think so.

Some people may find that giving up their privacy for convenience is worth it, others, like me, would think the opposite, but we individually make the decision to use or not use Google, Facebook, etc. "Being taken advantage" is subjective.

Even if it was generally considered to be "malicious" and "being taken advantage of", you're arbitrarily twisting the rules of the game, to favor one group of people (the "users") and impair others (those that create the service). You may say: Yeah, but those being impaired already have millions of dollars and those being "protected" are good people. So, you decide who is "good people" and whose freedom doesn't matter? Should millionaires have less rights than poor people? Laws should correct for the amount of money/power people have, is that fair? I don't think so.