Meta has warned that they would ban Facebook and Instagram in Europe. This will happen if they cannot transfer, store and process data on the US-based servers. 

Meta, the social media giant, makes $6.8 billion in advertising revenue from the continent. Despite that, they might walk away from the countries in the EU. This does not include Britain after Brexit. If a new law is made which does not allow Meta to use Europeans’ data, then they have to shut down their services in Europe. 

Data collection is a core part of an ad business that has been helping Meta generate millions of dollars in revenue. The frameworks that managed the transfer of information from the continent face a dilemma.

The critical ‘Privacy Shield’ online data arrangement between Europe and the United States was made void in July 2020. This happened in the top EU court decision and brought legal uncertainty for big tech Meta.

Meta said to the US Securities and Exchange Commission that the current EU regulations are fending off data transfer in its annual report. This transfer of data is necessary for its operations.

The regulators of Europe are drafting new laws. This will help decide how users’ data will be transferred to the US. However, the US government and European regulators are still talking about ways in which the issue can be solved.

This is not the first time where FB (Facebook) has become involved with regulators and governments over how it is being regulated.

In 2021, the social media giant banned Australian users from sharing news articles for many days. This was to object to a law forcing the company to pay publishers for content. Later on, they reactivated news stories after negotiations with the Australian government, which caused some changes in the law.

Meta said that they have no desire or plans to ban Facebook an other services in Europe. It is just that Meta and other business organisations rely on data transfer between the EU and the US to operate Global Services. Meta cannot rely on SCCs or other alternative means of data transfers from Europe to the United States. As a result, they will not offer several products and services. This includes Facebook and Instagram in Europe.

Metas’ data has been regulated by a data transfer Framework known as the Privacy Shield and other model agreements. However, this Treaty was made void by the European Court of justice in July 2020 e due to data protection violations. 

Since then, the US and the EU have been working on a new version that is yet to be implemented. 

Recently Meta is relying on standard contractual clauses to transfer the data.

In its report, Meta has revealed that it hopes to reach an agreement with the EU this year. The final decision will be revealed within the first half of this year.