In a document filed with the US Securities and Exchange Commission (SEC), Meta Platforms Inc (NASDAQ: FB) warned that it could be forced to close Facebook and Instagram in Europe if it does not find a way to transfer data from its European. users to the US.
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Data sharing issues
As reported by CNBC, the internet giant is considering closing down social networks in Europe as the inability to transfer user data back to the US continues.
The revelation stems from a complaint by Maximilian Schrems, an Austrian citizen who wanted to block the transfer of personal data between Europe and the US. Although his complaint was initially dismissed by the Irish courts, Schrems took the case to the High Court.
It referred him to the Luxembourg court and the highest body of European justice finally agreed with the complainant.
Meta explained its position in a statement: “We have no desire or plans to withdraw from Europe, but the simple reality is that Meta, and many other companies, organizations and services, are dependent on data transfers between the EU and the US to work. global services. “
“Like other companies, we have complied with European standards and relied on standard contractual clauses, and appropriate data protection measures, to operate a global service.”
The ruling concludes that the transfer of personal data between the European Union and the USA cannot be carried out under the current mechanism. This implies that if Meta does not change the method of managing user information, Facebook and Instagram could have their days in Europe.
However, according to European justice, the US does not provide sufficient guarantees to protect the privacy of the personal data of users on the continent.
The company warned of the consequences of the Schrems II decision in a very comprehensive document sent to the SEC, in which Zuckerberg’s company assured that “as a new transatlantic data transfer framework is not accepted and we can not proceed “using ECCs or other alternative means. From the transfer of data from Europe to the US, it is likely that we will not be able to offer several of our key products and services, such as Facebook and Instagram, in Europe.”
Meta is part of the Entrepreneur Index, which tracks 60 of the largest listed companies run by their founders or founding families.