Meta because it threatens to take Facebook & Instagram from Europe

The parent company of Facebook and Instagram, the Meta, threatens to shut down its European operations if EU regulators do not allow the company to share users' personal data with the United States.

The move is related to a decision of the Court of Justice of the European Union, (Shrems II case), which declared common use (Privacy Shield) between EU and US, no longer legal.arches

Will Meta finally withdraw Facebook and Instagram from Europe?

Why is Meta threatening to withdraw its services from Europe?

The Meta Reported that the recent changes to the Privacy Shield will fundamentally change its business model, making it impossible to offer existing “of and services" to its European users.

Meta's main business is selling ads based on data it collects from its users. So losing this data would be extremely damaging to Meta targeted advertising.

Why the shield Privacy Shield is no longer legal?

In 2011, an Austrian lawyer (Maximillian Schrems) analyzed 1.222 pages of that Facebook had for him after he requested his data from the company. He found that Facebook was keeping information that he believed he had deleted from the service as well as information that had been shared without his permission. Schrems filed a complaint with the Irish data protection agency, where Facebook is registered, for tax purposes.

In 2020 (9 years later) the Court of Justice of the EU found that the Privacy Shield, o which allows US companies and authorities to collect information on EU citizens, was flawed. The Privacy Shield did not provide sufficient protection for EU user data (in the EU, user data protection laws are much stricter than in the US) and did not provide sufficient safeguards for EU citizens about how data is used by the government of USA.

As the "data vehicle" or Privacy Shield is no longer legal, companies such as Meta, Google, Amazon and Microsoft will have to reconsider their European operations. Considering that cloud computing services offered by Google, Amazon and Microsoft are a huge part of the Internet as we know it today, Meta is not the only large technology company facing the data transfer problem.

Will Meta withdraw Facebook and Instagram from Europe?

Most industry experts believe that Meta's statement is just a threat. European Union regulators have been working with their US counterparts in a months-long effort to reach a new agreement. It just hasn't passed yet.

A Meta spokesman said:

"We have absolutely no desire and no plan to leave Europe, but the reality is that Meta, and many other companies, organizations and services, rely on data transfers between the EU and the US to act as global services," he said. the company's desire to assist in the completion of the new data agreement.

In short, there is no benefit to Meta leaving Europe. It would further reduce its share price, eliminate billions from its value and "cut" millions of users from its services.

There is no doubt that a new Privacy Shield law will come into force soon, but it will most likely be stricter on EU citizens' data than the previous bill.

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Written by giorgos

George still wonders what he's doing here ...

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