Even though this is tied to their business account model (to allow them to process data for consumer contacts), the (sleazy) fact that you can’t use the app at all until agreeing to accept it and the fact that it concentrates more information on Facebook ought to be enough for the EU to trigger a probe into the matter.
As an aside, a significant number of my close contacts have been trying Signal over the past few months because it’s likely the sanest cross-platform messaging app out there right now, but I honestly don’t expect this to trigger mass migrations – most people will just click through the prompt with nary a second glance…