Facebook and Instagram may shut down in Europe. Here’s why

Fb unveiled its new Meta signal on the firm headquarters in Menlo Park, Calif., on Oct. 28, 2021. The corporate is contemplating shutting down Fb and Instagram in Europe.

Tony Avelar, Related Press

Meta could take into account shutting down Fb and Instagram in Europe if it could’t preserve transferring consumer knowledge again to the U.S., the social media large mentioned in its annual report final Thursday.

What’s the information: Within the report, Fb mentioned: “If a brand new transatlantic knowledge switch framework will not be adopted and we're unable to proceed to depend on SCCs (normal contractual clauses) or depend on different various means of information transfers from Europe to america, we'll probably be unable to supply a lot of our most vital services, together with Fb and Instagram, in Europe.”

Flashback: In July 2020, the European Court docket of Justice struck down the Privateness Protect, which is the prevailing knowledge switch association between the U.S. and EU, on the premise that it doesn’t adequately shield European residents’ privateness, in keeping with Fortune.

What European officers mentioned: European lawmaker Axel Voss mentioned on Twitter, “I've at all times referred to as for an alternative choice to the EU US privateness defend to discover a balanced settlement on knowledge trade,” he mentioned. “Nevertheless, META can't simply blackmail the EU into giving up its knowledge safety requirements, leaving the EU could be their loss.”

Whereas others, like Germany’s new financial system minister Robert Habeck, assume life might be higher with out Meta, in keeping with Euronews.

• “After I used to be hacked I've lived with out Fb and Twitter for 4 years and life has been unbelievable,” mentioned Habeck on Monday.
• His colleague, French Finance Minister Bruno Le Maire, concurred: “I can verify that life could be superb with out Fb and that we might stay very nicely with out Fb”.

What Meta mentioned: In accordance with CNBC, a Meta spokesperson mentioned that the corporate has no plans to withdraw from Europe and has raised the identical issues in earlier filings.

• “However the easy actuality is that Meta, and plenty of different companies, organizations and companies, depend on knowledge transfers between the EU and the U.S. in an effort to function international companies,” they mentioned.