Meta might shut down Instagram and Facebook in Europe if it is no longer allowed to transfer, store, or process data from EU users on its US-based servers.
Meta’s annual filing with the US Securities and Exchange Commission, which got first reported by iTWire, confirms this. The problem stems from transatlantic data transfers governed by the ‘Privacy Shield’ framework and other agreements that the corporation employs to store and use data from European consumers on American servers.
Agreements that allow for data transfer are now strictly regulated in the European Union. In a recent report to the US Securities and Exchange Commission, Meta warned that unless a new framework gets put in place, the company is no longer allowed to use the existing model agreements, it will ‘likely’ no longer be able to offer many of its most significant products and services,’ such as Facebook and Instagram.
Meta emphasized the sharing of data between countries for the services and targeted advertising.
The European Court of Justice revoked the Privacy Shield in July 2020 owing to data protection issues. Since then, the EU and the US have emphasized that a new version of the pact is in the works.
Meta also uses model agreements, commonly known as Standard Contractual Clauses, to process data from European users on American servers.
“A lack of safe, secure, and authorized international data transfers would harm the economy and stifle the growth of data-driven businesses in the EU.” In reaction to City A.M., Meta’s VP of Global Affairs and Communications, NMick Clegg, remarked, “That is as we pursue recovery from Covid-19.” Large and small businesses in several industries would feel the impact.”
“In the worst-case situation, this could imply that a small tech start-up in Germany would no longer be allowed to use a US-based cloud service,” Clegg explained.
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