Meta, formerly known as Facebook, has warned that it may need to shut down its Facebook, Instagram, and other products and services in Europe if it is unable to process user data on both US-based and Europe-based servers. The warning comes after a change in European laws requiring users’ data to be kept and processed on only European servers.
In a report to the US Securities and Exchange Commission, Meta stated that the data transfer between countries or regions is ‘critical’ to its ‘operation.’ Meta also shared its fear that if it’s unable to transfer data between the US and countries in Europe, it could impact the way it currently provides its services and its ability to target ads.
Europe has Standard Contractual Clauses (SCCs) for international data transfers. As Meta stated in its report, in August 2020, it received a draft decision from the Irish Data Protection Commission (IDPC), which stated that Meta’s data transfers between the US and Europe are against the General Data Protection Regulation (GDPR) and must be suspended.
Although the decision by the IDPC was only a draft, Meta suspects that a final decision may be issued in the first half of 2022. According to the company, if it can’t rely anymore on the SCCs and if a new data transfer framework is not introduced, its fear will become a reality, and it won’t be able to offer many of its products in Europe, Facebook and Instagram included. This, like Meta said, ‘would materially and adversely affect’ its business and financial condition.
At this moment in time, Meta’s warning is only a possible future, and it doesn’t mean it will ever happen. But let us know what you think. Do you think that Meta may indeed shut off its Facebook and Instagram platforms in Europe, or do you think that these are only empty words?
