Social media conglomerate Meta has said that they might be forced to shut down Facebook and Instagram in Europe completely for failure to comply with EU regulations. According to the EU Regulations, companies can transfer, store, and process data of Europeans only within the continent. Facebook & Instagram use US-based servers to run ads that help to operate the platform.
Last week, Meta issued the warning during its annual report. The company confirmed that if the continent doesn’t follow the current agreements and regulations, it may have to shut down Facebook and Instagram. Quoting a commission spokesperson a Bloomberg report said the EU data transfer negotiations with Washington have intensified. However, they “take time given also the complexity of the issues discussed and the need to strike a balance between privacy and national security.”
What Facebook said on the issue?
The company stated that if they are unable to transfer data between and among countries and regions in which they operate or are restricted from sharing data among their products and services, their ability to offer services could be affected. Also, the way they offer the services to target ads will be impacted for advertisers.
However, Facebook explained that it may also be able to reach out to a new agreement in 2022. If it fails to do so, it will not be able to provide several important services and products which includes Instagram and Facebook for Europe.
European lawmaker on the Facebook’s decision
European lawmaker Axel Voss tweeted that the company cannot just blackmail Europe and ask to give up its data protection standards. He also said that if Meta decides to leave Europe, it would be a big loss for the company itself.
What Facebook’s spokesperson has said?
While talking to Euronews, a Facebook spokesperson said that the company has no wish or plans to shutdown Instagram and Facebook for Europe. However, the reality is, big businesses and organisations including Meta depend upon data transfers between the EU and the US to operate global services.
Meta stated just like other companies it had followed European rules and trusted upon Standard Contractual Clauses and data safeguard to go with the global services.
Why were US Companies restricted to send European user data to the US?
To perform data transfers Meta could formerly make use of data transfer framework as legal basis known as Privacy Shield.
However, in July 2020 due to the destruction of data protection, the European Court of Justice cancelled the treaty. It was believed that the standard doesn’t safeguard privacy of the citizens of Europe.
This was the reason why US Companies were restricted to send European user data to the US. As for now, US and EU confirmed that they are functioning over an updated and new version of the treaty.
