Comment by Phemist

The keyword here is "use".

Homomorphic Encryption reduces the breadth of computations that can be ran on the gathered data, by making it inaccessible outside of the specific homomorphic scheme that was chosen. So yes, in that sense it cannot be used arbitrarily.

However, the results, i.e. knowledge derived, from the chosen computations can still be shared arbitrarily, which IMO is a much greater issue, as the need of the result sharing will inform the computations that can be done within the scheme.

Who defines the computations? Surely not the users, and lacking regulations, also surely not regulatory bodies.