Then the social media companies need regulation.

Too bad, they have too much money to bribe lawmakers with. Zuck is worth a quarter trillion dollars, and he ain't in a rush to give up so much as a penny of that if it doesn't fufill his goals of enriching himself further.

Giving the state the power to regulate social media will just allow the the state to censor and control information again like it does with traditional media.

Exactly. The fact that western governments have held that the corporations themselves have a free speech right to control your feed and speech but you do not have a free speech right to choose what the algorithm feeds you or what you say is absolutely stunning and reveals that capitalism is more powerful than liberalism in the west.