If I pay for a product (on-premise), it's not your business what I do with it.

If I use the free hosted service (ex: gitlab.com), then this is the price to pay for a free service (within legal rules like GDPR).

BTW, it's too late for me. I'm about to move all my stuff to a self-hosted Gitea (on a cheap VPS) in addition to Matrix, Mastodon, ...