The head of Snapchat cautioned European regulators on Tuesday that their attempts to protect user data were entrenching the positions of Internet giants like Google and Facebook.
Snap CEO Evan Spiegel’s remarks in London came three months after the UK parliament published a scathing report accusing Facebook of behaving like”electronic gangsters” who brazenly violate privacy principles.
The European Union took the lead last year by executing a strict General Data Protection Legislation (GDPR) policy making programs’ access to customer data more transparent and easier for consumers to control.
Spiegel known as the European approach but possibly self-defeating.
“I believe that some of the regulation like GDPR, by way of instance, may end up entrenching very large players,” he told a business conference organised by The Wall Street Journal.
“If you’re a small publisher now and you want to run ads on your website, it’s very very hard to do this as you’re not at scale, you do not have a giant advertisements platform, which means you might want to plug into Google, by way of instance, or Facebook,” he explained.
“And if you do that, you’re going to need to tell your customers that you’re promoting your information to Google or Facebook.”
Snapchat is a picture and video sharing tool especially popular among adolescents.
Spiegel said the cell phone program is frequently employed by 75 percent of 13- to 34-year-olds in the United States.
It currently has 190 million users – about 60 million more than Twitter – but is still operating at a reduction.
The Financial Times estimated the business is going to need to raise fresh capital in three years when it continued burning through money at current rates.
Snap’s inability to make a profit reflects other platforms’ struggles to create advertising revenue.
The business is experiencing a thorough re-think that tries to balance growth with a rising backlash against how personal details are bought and sold for targeted advertisements.