Palantir (PLTR) Chief Executive Alex Karp said French regulatory restrictions, including limiting government use of US-made software, were becoming counterproductive, AFP reported Wednesday, citing an interview with Karp.

Karp's remarks come after France recently called for the DGSI, its domestic intelligence agency, to ditch Palantir in favor of local provider ChapsVision over data sovereignty concerns.

"These things are backfiring," Karp said, adding that "the regulatory environment is obviously not helping Europe or France," according to the media outlet.