That’s how most news websites work in Europe: accept the cookies, or pay.

Yes, but opt-out tracking data which is not necessary for the operation of the primary use case of the app is not allowed.

It must be opt-in, truly a free choice, and informed consent, and declining must be as easy as accepting.

My search told me that unless you are a gatekeeper, offering a reasonably priced ad-free tier allows to make the ad-monetized version personalized only.

I think it makes sense. Either pay, or consent to effective ads. There's no free lunch

You are allowed to serve ads, but not use data to serve personalised ads without free choice opt-in.

In theory of course, in practice nothing is being governed or fined for smaller companies.