Meta says that it may shut down Facebook and Instagram services in Europe due to the European data regulations that restrict Meta to transfer, storing, and processing the data of Europeans on its US-based servers.
Last Thursday, Meta submitted an annual report to the US Securities and Exchange Commission, the country’s financial authority that said “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.”
Meta said that they won’t be able to offer its services to those regions where they are restricted from sharing the data among its products and services. The company further said that it uses the data to offer its services and target personalized ads.
Meta is in a no-win situation where it requires data from Europe for its ad revenue. And, without the data from Europe, it would suffer anyway.
Lately, Meta saw a huge downfall in its stock value following Facebook’s total user base declined for the first time. So, it needs the users in Europe if not for ad revenue but for stats.
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