Facebook operator Meta spoke out for the first time about the possibility of ending the social network and its subsidiary Instagram in Europe. Because data protection laws in Europe are increasing restricting business opportunities. This is not a mind game the PR department of the company wants to create opposition to strong consumer protections.
Management has, however, provided the latest annual report to the US Securities and Exchange Commission SEC. This document contains key strategic plans that are designed to inform investors about the company’s future developments. The General Data Protection Regulation (GDPR), is what Mark Zuckerberg and his Facebook management team are most focused on. There’s more. The company is concerned that its ability to process user data in order to optimize its advertising business is being compromised by European law and its interpretation by regulators and courts.
This year, the decision might be made
The SEC report cites, for example, the European Court of Justice’s judgment, which invalidated the so-called Privacy Shield. This would allow US internet companies access to US user data, which is contrary to the GDPR’s actual meaning. The court ruled that the EU Commission should not just ignore the legal regulation through an agreement to avoid making it more difficult for large companies to do business.
Meta management sees it as a critical part of business operations to transmit and process user data across borders. This is how personalized advertising spaces are promoted.
Additional court decisions regarding data processing by Instagram and Facebook are expected to follow. We cannot continue to rely upon standard contractual arrangements or use other methods to transfer data from Europe into the United States without a transatlantic data transfer framework. This would make it difficult to offer key products and services in Europe, such as Facebook and Instagram. It would also have a significant and negative impact on our financial condition, results, and business. The report states that.
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