> The result is that smaller companies either evaporate or move to marketplaces because they can no longer acquire customers at acceptable rates.

I am a bit stuck here, what do you call smaller businesses? Rolling out effective targeted advertising is hard in the first place. It's even more so in an environment like Europe where potential buyers are fragmented across countries with different languages, cultures, and so on.

If anything, effective privacy laws levels the playing field. That's good for companies that can't afford a large marketing budget.