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Threads collects so much sensitive information it’s a ’hacker’s dream,’ experts say
(nationalpost.com)
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Personally, I think it says a lot that they can’t release it in the EU yet because it gathers so much data. Plus, we know Meta can’t be trusted with people’s data. It’s gathering more than other Meta apps and need to be aware of it.
As far as I know, they didn't want to rush it out in the EU because they didn't know if they'd fall foul of rules or not and they couldn't wait weeks or months just to find out. Not because they can't. Though, ironically, I think federation would cause the biggest problems. (How do you support the right to be forgotten when it's not technically possible?)