Reportedly, Meta, formerly known as Facebook, hid a new data collection warning in a report filed with the Securities and Exchange Commission last week. The Silicon Valley titan has slammed EU regulations that will prevent him from digest data from Europeans on US servers inside. Meta said it could be forced to shut down essential services in Europe if it cannot move, store or process data across the Atlantic.
According to Meta’s study, unless European data rules are relaxed, the company is unlikely to be able to offer Facebook and Instagram. If the company decides to carry out the threat, British citizens could be banned from using Facebook and Instagram.
Data transfers and personal data
Meta’s main concern is a problem with transatlantic data transfers. Meta now handles data in the US and Europe, which is critical to how it does business. However, under the new restrictions, Meta may be required to process this data on European servers. The regulations aim to protect the privacy of Europeans by ensuring that personal data is not processed outside European borders. Meta asks to be allowed to continue to use the transatlantic Privacy Shield data transmission mechanism. Meta’s Nick Clegg asked:
We urge regulators to take a proportionate and pragmatic approach to minimize disruption to the thousands of companies that, like Facebook, rely in good faith on these mechanisms to transfer data safely and securely.
This was the legal basis on which the company carried out data transfers until it was overturned in July 2020 by new rules aimed at protecting the personal data of Europeans. It is expected that the Meta and Europe will conclude new agreements in 2022. However, if new agreements cannot be reached, it may be forced to withdraw services from Europe.
The company’s chances of carrying out the threat are slim, given that Europe is one of its largest and most profitable regions. Comments are most likely the company flexing its muscles in the face of regulations that can stifle its data collection, which is its primary source of revenue. A Meta spokesperson confirmed in a statement:
We have absolutely no desire and no plans to withdraw from Europe, but the simple reality is that Meta, and many other companies, organizations and services, depend on data transfers between the EU and the United States. to operate global services.
This follows a tough few weeks of struggle for Meta. Last week, Facebook was discovered to have lost users for the first time in its 18-year history, potentially jeopardizing its status as the world’s most popular social networking platform.