The head of Snapchat warned European authorities on Tuesday that their attempts to protect user information were entrenching the rankings of Internet giants such as Google and Facebook.
Snap CEO Evan Spiegel’s comments in London came three months after the UK parliament published a scathing report accusing Facebook of acting like”electronic gangsters” who brazenly violate privacy rules.
The European Union took the lead last year by implementing a rigorous General Data Protection Legislation (GDPR) policy manufacturing programs’ access to consumer information more transparent and easier for users to control.
Spiegel called the European approach but possibly self-defeating.
“I believe that a number of the regulation like GDPR, for example, might end up entrenching very large players,” he told a business conference organised by The Wall Street Journal.
“If you are a small publisher today and you would like to run ads on your website, it’s very very difficult to do this as you’re not at scale, you do not have a giant ads platform, so you may want to plug into Google, by way of example, or Facebook,” he said.
“And if you do that, you’re basically going to need to tell your customers that you’re promoting your data to Google or Facebook.”
Snapchat is a picture and video sharing tool particularly popular among teens.
Spiegel said the cell phone app is regularly used by 75 percent of all 13- to 34-year-olds from the USA.
It now has 190 million daily users – about 60 million over Twitter – but is still operating at a reduction.
The Financial Times estimated the business will have to increase fresh capital in three years if it continued burning through cash at current prices.
Snap’s inability to create a profit reflects other platforms’ struggles to create ad revenue.
The business is experiencing a comprehensive re-think that attempts to balance growth with an increasing backlash against how personal details are purchased and sold for targeted ads.