Could Facebook and Instagram really shut down in Europe?
Over the weekend, several reports suggested that Facebook’s parent company might consider Meta The EU is shutting down its services This is due to an ongoing legal challenge over how the EU manages user data.
Reports follow this note, which was included in the meta The latest SEC update:
“In August 2020, we received a preliminary draft decision from the Irish Data Protection Commission (IDPC) which initially concluded that the reliance on European user data meta platforms Ireland’s Standard Contractual Clauses (SCCs) does not comply with general data protection. . Regulation (GDPR) and initially suggested that the transfer of user data from the European Union to the United States should therefore be suspended. We believe that a final decision in this investigation could be issued in the first half of 2022. If a new transatlantic data transfer framework is not adopted and we are unable to rely on SCC or other alternative means of data transfer from Europe. In the United States, we will probably be unable to offer some of our significant products and services in Europe, including Facebook and Instagram, which will materially and adversely affect the outcome of our business, financial situation and activities. “
This is nothing new.
As a meta note, back in 2020, The European Union (EU) has sent a preliminary order suspending the transfer of data about its EU users to the United States. The order was issued amid growing concerns among EU officials about possible surveillance practices by the US government. The specifics of the perceived threat were not made clear in this instance, but the move was followed by pressure from the Trump administration. Block several Chinese-origin apps from AmericaDue to concerns that China’s ruling CCP could be used to provide data to U.S. citizens, including TikTok.
That push is not over, and TikTok, as well as many other Chinese apps, continue to operate in the United States. But the TikTok example has raised new concerns about the security of foreign countries tracking citizens through social apps and possible ways in which such data could be misused by regional agencies, if they are so prone.
Because of their involvement on most fronts, there seems to be little cause for concern on this front between the United States and the EU. But still, this is a long-standing problem, and as Meta has now noted, an official ruling in this case could come in the next few months, which, at least theoretically, could force Meta to re-evaluate how it stores user data. .
This could lead to the removal of Facebook and Instagram from the region.
That would obviously be a big step forward, and it seems like a pose at this stage, as opposed to what Meta would actually do. But then again, in February last year, due to a dispute over revenue sharing, Meta Australia excluded all news publishers from its platform, indicating that it was willing to take big steps in certain areas.
If you have to. Meta can still come to an agreement on user data transfer, ensuring that it can continue to process EU user data within US-based data centers. Or it may be forced to keep within all regions.
Note that the meta already does Operates the data center Ireland, Sweden and Denmark and it was recently Another construction has been applied for in the Netherlands. So it’s not entirely out of the question that the meta could be aligned with this kind of requirement, presumably, if it had to. However, this would be a significant initiative, and it could also limit user data analysis, at a time when Meta is already working on a reduction in this front due to Apple’s iOS 14 update.
Here other potential benefits for EU countries may be related to tax liability and ensuring that the meta pays its fair share in each region. If Meta is forced to operate entirely in each country, and has to set up entirely local offices with data processing, it may limit the ability to focus on low-tax countries to establish regional bases.
This is a long bow, and is not primarily the focus of this proposal, but the idea is that such regulations ensure data sovereignty in each region, which may be related to governance in other cases as well.
But overall, a complete EU shutdown of Facebook and Instagram seems unlikely. Facebook alone has 427 million users in the EU, and is the only region where it has seen a significant increase (+ 4m MAU) in recent quarters. And this is not the case with Instagram.
Will Meta really be willing to cut a lot of people off completely?
My guess is that they have to finish all the ways before it happens, and a verdict has not been finalized yet, we are not at that next stage yet.
