It is the EU's job to do both, but neither is done to the exclusion of the other. We are lucky to have such a privacy-focused federal body which can bring about change effectively. I'm thrilled at the passing of GDPR, for example.
and the massively increased compliance costs will ensure that no domestic small competitor will ever be able to challenge their position
that's some effective change
[1]: https://www.politico.eu/article/gdpr-facebook-google-privacy...
The point was that his comment was a non-sequitor. The EU strengthening Google's monopoly position will not make advertising go away.
(Also, my perhaps naive hope is that the better the Google's market share here, the more damage will be caused by EU regulating the space.)