Meta warns shutting down FB, Instagram in Europe over data-sharing dispute

• Facebook was ordered in August 2020 to stop transferring user data from EU to the U.S.

• EU regulators are planning a legislation on how EU users’ data gets transferred to the U.S.

Meta Platforms (NYSE: FB) said it might shut down Facebook and Instagram in Europe if it is not allowed to transfer user data from U.K. to the U.S.

EU regulators are planning a new legislation deciding how EU citizens’ user data gets transferred to the U.S.

“If a new transatlantic data transfer framework is not adopted and we are unable to continue to rely on SCCs (standard contractual clauses) or rely upon other alternative means of data transfers from Europe to the United States, we will likely be unable to offer a number of our most significant products and services, including Facebook and Instagram, in Europe,” said Facebook.

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The company added this “would materially and adversely affect our business, financial condition, and results of operations.”

Ireland’s Data Protection Commission sent a preliminary order to Facebook in August 2020 to stop transferring user data from EU to the U.S. Ireland’s DPC is expected to issue its final decision in 2022.

Facebook will have stop transferring data it collects from European users if SCCs cannot be used. DPC would fine the social media giant up to 4% of its annual revenue, or $2.8 billion if it fails to comply.

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In 2020, the European Court of Justice ruled that the data transfer between the EU and the U.S. does not protect the privacy of European users. The court, therefore, ordered U.S. firms to stop sending European users’ data to U.S.

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