Meta warns of Facebook, Instagram shut down in Europe

Meta Platforms Inc. may be forced to shut down Facebook and Instagram in Europe. The American tech company headquartered in Menlo Park, California, issued a warning of service pull out in the region if the conflict over data sharing is not solved.

Meta said late last week that it may not be able to offer some of its "most significant products and services," including the availability of Facebook and Instagram in the European Union if it will not be able to go on with transferring user data to the United States where the company is based.

The transfer of data has been hindered due to the region's intensified overseas privacy regulations. According to Fox Business, Meta Platforms revealed this scenario of Facebook and Instagram shut down in Europe in its recent filing to the Securities and Exchange Commission.

One part of the statement in the filing reads: "If a new transatlantic data transfer framework is not adopted and we are unable to continue to rely on 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, which would materially and adversely affect our business, financial condition, and results of operations."

It was explained that previously, Meta could transfer data from users in the EU and process it on servers in the U.S., and this was possible as there is a transatlantic agreement called Privacy Shield. However, in July 2020, this agreement has been nullified by a European Union court and up to now, the two governments have yet to form a new one as a replacement.

Meta's spokesperson told Fox Business that they have no plans and desire to pull out of Europe but the reality is that company and other businesses are only able to operate and provide services by relying on data transfers between the EU and the US. He added that Meta has been following the rules in Europe and depending on Standard Contractual Clauses so it can carry out its services globally.

Unfortunately, Meta's use of the Standard Contractual Clauses has also been suspended by the Irish Data Protection Commission in August 2020. The social media giant is now waiting for the final decision of the regulator.

Meanwhile, in response to the news of possible shut down of its social media platforms in Europe, CNBC reported that Axel Voss, a member of the European Parliament, tweeted that Meta cannot just blackmail the EU to give up its data protection standards then pointed out that withdrawing from the country would simply be the company's loss.