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How does it take too much work to just not spy on people? Or at least not spy on people in the EU, which the site already can detect so it shouldn't be a problem. In fact, it would probably be less work than making the site not work for such people.
I think you missed on the most important driving factor, money.
I mean the thing is they already built the site. If they were building the site from scratch today then you would be correct.