Meta has said it is considering shutting down Facebook and Instagram in Europe if it can’t keep transferring user data back to the US, reported CNBC.
The social media giant issued the warning in its annual report last Thursday. Regulators in Europe are currently drawing up new legislation that will dictate how EU citizens’ user data gets transferred across the Atlantic.
Facebook 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.”
The company added this “would materially and adversely affect our business, financial condition, and results of operations.”
“Meta cannot just blackmail the EU into giving up its data protection standards,” European lawmaker Axel Voss said via Twitter, adding that “leaving the EU would be their loss.” Voss has previously written some of the EU’s data protection legislation.
A Meta spokesperson told CNBC on Monday that the company has no desire and no plans to withdraw from Europe, adding it has raised the same concerns in previous filings.
“But the simple reality is that Meta, and many other businesses, organizations and services, rely on data transfers between the EU and the U.S. in order to operate global services,” they said.
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