Meta threatens to shut down Facebook, Instagram in Europe over data regulations

Amid negotiations between regulators to replace a scrapped data transfer pact, Meta CEO Mark Zuckerberg has once again threatened to shut down its two key social media platforms, Facebook and Instagram, in Europe if the company is not allowed to transfer, store and process Europeans’ data on servers based in the United States.

 

Facebook’s parent company Meta threatened to pull down its social media networks from Europe in its annual report submitted to the US Securities and Exchange Commission on Thursday.

 

After the previous EU-US data transfer framework known as the Privacy Shield was ruled invalid by the European Court of Justice in 2020 over fears that citizens’ data isn’t safe once shipped to the US, European Union (EU) regulators have been stuck in negotiations with the US for months to replace it.

 

Meta slammed European regulators in its new annual report, condemning regulations that prevent the company from storing European data on American servers for security reasons. It stated that European laws would impact its “critical operations” and that the company would shut down in the entire region.

 

If it couldn’t rely on new or existing agreements – such as so-called standard contractual clauses – to shift data, the company said it would likely be unable to offer its most important products and services in Europe, including Facebook and Instagram. Meta claimed that transnational processing of user data was critical to its business and targeted advertising.

 

Meta previously warned in its annual report that if it is not allowed to use standard contractual clauses, it will be “unable to operate” parts of its business in Europe without naming its two most important social media platforms.

 

While it’s unlikely that Meta would pull its flagship products from one of its most lucrative markets, the company’s response reflects growing tensions between the social media company and lawmakers over user data ownership.

 

Negotiations with Washington have intensified, according to the European Commission, but they are taking time due to the complexity of the issues and the need to strike a balance between privacy and national security. According to reports, a final decision is expected in the first half of this year.