Meta has announced that it may shut down Facebook and Instagram in Europe due to data transfer issues.
The tech giant warned that if it is “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,” it may not be able to provide users in the region with access to their products and services.
“Meta cannot just blackmail the EU into giving up its data protection standards,” said Axel Voss, a European lawmaker.
Although a Meta spokesperson stated that the company does not wish to pull out from Europe, nor does it have plans to, data restrictions could impact their global services.
This news comes as lawmakers in Europe consider new legislation that would impact how EU citizens’ data gets moved around the world.
For instance, Ireland’s Protection Commission requested that Facebook stop transferring user data from the EU to the US and a final decision about this order will be made during the first half of this year.
Meta has faced new roadblocks due to data privacy concerns in recent years, which is having a direct impact on its earnings as was seen during its disappointing Q4 2021 report to investors.
The company makes a large chunk of its revenue by being able to track user data and target ads accordingly, but Apple’s privacy policy updates that give more control over what can be tracked has hindered Meta’s biggest cash cow.
