The exact same argument could be made for newspapers, magazines, television, film or books .... these businesses are all regulated, yet they are able to still generate a profit under tight controls, social media corporations would be able to do the same.
We need to regulate it because it is all warping the fabric of our society
If all newspapers, books and TV and broadcasting news was all unregulated, what do you think would happen? That exact scenario is playing out over the internet ... we are allowing the virtual spread of misinformation, disinformation, non-information and outright lies and we are wondering why our world is falling apart.