I once read an article that argued social media algorithms should be regulated like medicines. As in, the company that wants to use it needs to run studies to prove their safety, and convince a panel of experts (not politicians) of that safety. Once they prove that it's a safe algorithm, they can use it (presumably with some sort of patent system for exclusive use for a period of time like drug companies).
More and more I think of that article and how it would be a much better approach than this ambulance at the bottom of the cliff approach where we let them fuck everyone up then give them fines.