Facebook and Instagram could be shut down across Europe, the company Meta announced in its annual report, due to problems with European regulations that prevent the transfer, storage and processing of user data from Europe on American servers.
As reported by Euronews, Meta warned in its annual report to the US Securities and Exchange Commission last Thursday that if the new framework is not adopted, the company will shut down Facebook and Instagram in Europe. Meta states that the processing of user data between countries is crucial for business and ad targeting, Indeks reports.
"If we are unable to transfer data between the countries and regions in which we operate, or if we are prohibited from sharing data with our products and services, it could affect our ability to provide our services, the way we provide our services, or our ability to target ads" , the statement said.
In case the new framework is not adopted, "we probably won't be able to offer a number of our most important products and services, including Facebook and Instagram, in Europe," Meta said.
What has changed?
Meta was previously able to use a data transfer framework called Privacy Shield as a legal basis for conducting transatlantic data transfers. But in July 2020, the European Court of Justice annulled the agreement due to data protection violations. The court found that the existing framework does not adequately protect the privacy of European citizens.
As a result, US firms were restricted from sending European customer data to the US and had to rely on SCCs (Standard Contractual Clauses). The EU and the US have said they are working on a new or updated version of the agreement.
How did the European Commission react?
"Securing a new arrangement for secure transatlantic data flows is a priority for us and our American partners," a European Commission spokesman told Euronews.
Negotiations have intensified in the past months, with discussions at the technical and political level. That includes regular contacts between Commissioner Reynders and his counterpart, US Commerce Secretary Gina Raimondo, they added.
"These negotiations are taking some time, given the complexity of the issues being discussed and the need to strike a balance between privacy and national security," the spokesman said.
What did they say from Meta?
Euronews reached out to Meta for comment but did not receive a response.
"We urge regulators to take a proportionate and pragmatic approach to minimize disruption to the thousands of companies that, like Facebook, have relied in good faith on these mechanisms to transfer data securely," Nick Clegg, Meta's vice president of global affairs, said a few days ago days.
"We have absolutely no desire and no plans to withdraw from Europe, but the simple reality is that Meta, and many other companies, organizations and services, rely on data transfers between the European Union and the US to operate global services," he added. .
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