Meta Platforms (NASDAQ: FB) is threatening to withdrawal its Facebook and Instagram services in Europe if regulators interfere in the transfer of user data back to the US.
According to Meta’s annual report published last week, the social media conglomerate warned it may shut down popular sites Facebook and Instagram in the event that Europe imposes more stringent regulation governing how Europeans users’ data is sent to the US.
“If a new transatlantic data transfer framework is not adopted and we are unable to continue to rely on SCCs (standard contractual clauses) or rely upon other alternative means of data transfers from Europe to the United States, we will likely be unable to offer a number of our most significant products and services, including Facebook and Instagram, in Europe,” read the statement from Facebook, adding that the company’s business, financial condition, and operation results would become adversely affected.
Back in 2020, the European Court of Justice objected to the current data transfer method between the US and the EU, citing inadequate protections of European users’ privacy. As a result, the court imposed restrictions governing how US-based companies send EU citizens’ data across the Atlantic, given that users are unable to properly challenge US government surveillance.
Information for this briefing was found via Meta. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.