This effectively means then that if you are in the EU and you'd want to use either Facebook or Instagram you'd have to pay for a subscription then because they presumably won't offer the free-service without personalized ads and since the law prohibits them from doing that then the only way to use either service will be to pay for it..?
Option A: Continue for free with ads (and tracking and profiling etc.)
Option B: Pay for a subscription without ads or tracking (most seem to use a service called "Pur" (pure))
This does not mesh with some people’s understanding of the GDPR, but at least several German courts said it’s okay.
Their reasoning was that GDPR says that consent must be freely given. If the site provides more service if you consent than the consent is not freely given according to those regulators.
(It seemed kind of goofy to me. In every other context I can think of consenting to something that you do not like in exchange for getting something that you want is usually considered to be freely given consent unless that something you want is something that is necessary).