> Having strong privacy regulations in the EU could create a market for this kind of products.
In some ways, the EU does have stronger data protection for it's citizens than the US. See for example the case where the ECJ ruled that the 'Safe Harbour' agreement was invalid because an Austrian law student[1][2] filed multiple complaints against Facebook's Dublin-based branch, essentially alleging that Facebook is a backdoor for US dragnet collection of EU citizens' (and others') data, which ultimately rendered the Safe Harbour invalid according to the ECJ.
[1] http://www.huffingtonpost.com/entry/max-schrems-took-faceboo...