
Why is Meta threatening to deactivate Facebook in the European Union
Meta has stated that if data transfer regulations between Europe and the United States do not materialize soon, it may be forced to withdraw Facebook.
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CIO Applications Europe | Monday, February 15, 2021

A legal quagmire around the transfer of EU data to US servers has prompted Meta to consider the future of Facebook and Instagram in Europe.
FREMONT, CA: Meta has stated that if data transfer regulations between Europe and the United States do not materialize soon, it may be forced to withdraw Facebook and Instagram from the EU market. Meta stated in its annual report to the US Securities and Exchange Commission released last week that unless a framework is developed to allow the transmission, storage, and processing of data from European users to US-based servers, this would "likely be unable to offer" several of its core services.
The declaration comes amid a broader debate regarding transatlantic data transfers in terms of data protection and privacy. In 2020, the Schrems II case threw down Privacy Shield, a data privacy instrument that allowed European data to be sent to US corporations, and stated that personal data transfers from the EU may only take place if there was an adequate level of protection. Later that year, the European Commission and the United States began talks on a replacement for the Privacy Shield that would comply with the court's decision. However, no deal has yet been reached.
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Personal data can be freely moved within the European Economic Area and between some other countries that are regarded to provide acceptable protection for personal data, such as Canada and Japan, under EU data protection law. Because the EU does not deem US data protection effective, data transfers are limited to techniques like the standard contractual clauses employed by businesses like Google and Facebook.
In August 2020, Ireland's Data Protection Commission stated that Facebook's usage of standard contractual clauses in respect of European user data violates GDPR, and that the corporation may be forced to stop transferring data between the EU and the US. In the first half of 2022, the Irish regulator is likely to make a final judgment.
The company is concerned that its data-dependent business could suffer if it cannot utilize standard contractual clauses or other data transfer methods in the absence of a data protection agreement like Privacy Shield or Safe Harbour.
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