Meta warned last Thursday that if no new framework is adopted on European data regulations, the company could no longer use the current model of agreements it would probably have to walk away from the European continent.
The issue comes down to European data regulations that prevent Meta, the company formerly known as Facebook, from transferring, storing and processing Europeans’ data on US-based servers.
Meta stated that processing user data between countries is crucial for business and advert targeting.
Meta clarified that it thinks it will be able to reach a new agreement this year but if it does not, it stated: "We will likely be unable to offer a number of our most significant products and services, including Facebook and Instagram, in Europe".
Meta could previously use a data transfer framework called Privacy Shield as the legal basis to carry out transatlantic data transfers.
But In July 2020, the European Court of Justice annulled the treaty due to violations of data protection. The bloc's highest legal authority argued the standard does not adequately protect European citizens’ privacy.
As a result, US companies were restricted in sending European user data to the US and have had to rely on SCCs (standard contractual clauses).
The EU and US have said they are working on a new or updated version of the treaty.
"Securing a new arrangement for safe transatlantic data flows is a priority for us and our US partners," a European Commission spokesperson told Euronews Next via email.
Like other companies, Meta said it had followed European rules and relied on Standard Contractual Clauses, and appropriate data safeguards to operate a global service.
"Fundamentally, businesses need clear, global rules to protect transatlantic data flows over the long term, and like more than 70 other companies across a wide range of industries, we are closely monitoring the potential impact on our European operations as these developments progress,” the spokesperson added.
Last week, Meta’s financial report saw its stock plummet by 25 per cent after the social media giant lost daily active users for the first time in its history.
-Euronews