In Meta's scheduled report for the mainThe US financial regulator the Securities and Exchange Commission (SEC) is considering a scenario for shutting down Europe from Facebook and Instagram. The reason for such an emergency step may be new legislation adopted in Europe. According to the updated legislation, Meta will be required to store user data from Europe exclusively on European servers. However, in a report to the SEC, the company notes that Meta's business model is designed to handle user data in both the US and Europe.
According to Meta, it is precisely the possibilitycross-border use of user data ensures the high efficiency of the company's most important products and services, including Facebook and Instagram. If a decision is not made on a possible transatlantic data transfer, such services in Europe will be forced to close.
The report indicates that a huge number of large, medium and small companies operating in various sectors of the economy will be deprived of the Meta services that underlie many business projects.
Prohibiting the transfer of user data between countries, regions, companies, and software products will reduce the effectiveness of service delivery, ad targeting, and Meta's financial performance.
Previously, the legality of European data storageusers on US servers were governed by the Privacy Shield, which provided the basis for data exchange between the EU and the US. Due to violations of European data protection regulations, in July 2020 the European Court of Justice declared the Privacy Shield program invalid. A year later, in June 2021, the European Commission adopted updated versions of the Standard Contractual Clauses (SCC) governing the transfer of personal data within the European Economic Area (EEA) and beyond. If European regulators and Meta do not reach an agreement based on the updated SCC data transfer rules, then the closure of Facebook and Instagram in Europe will become a reality.