In a recent filing to the Securities and Exchange Commission, the Mark Zuckerberg-led company revealed that “if a new transatlantic data transfer framework is not adopted and we are unable to continue to rely on [Standard Contractual Clauses] or rely on 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”
It’s more likely that the comment is a recognition of the regulatory challenges the American corporation has in the European Union than a threat at this point. When a company is publicly traded, the Securities and Exchange Commission (SEC) requires it to disclose any difficulties that could have an impact on profits or losses.
The simple fact is that Meta, as well as many other businesses, organisations, and services around the world, depend on data transfers between the EU and the US in order to provide worldwide services. We have no desire or plans to leave Europe.” “According to a Meta spokeswoman, “As these changes unfold, we’re keeping a careful eye on their possible impact on our European business.”
But privacy campaigner Max Schrems argued against the usage of those terms, which he has contested multiple EU privacy legislation and judgements. European Union courts responded by ruling that US law did not provide a “sufficient level of protection,” particularly from the government’s widespread mass monitoring. In order for the data transfers to be legitimate, US legislation would have to be “basically equal to those required under EU law,” which is a significant hurdle to overcome. To allow Meta/Facebook to continue transferring data under the Standard Contractual Clauses until September 2020, a temporary freeze on the order was granted.
In Ireland, the Data Protection Commission was compelled to examine Meta/usage Facebook’s of Standard Contractual Clauses when the case was brought up in court. The Irish regulator, in a preliminary decision, stated that it did not.
Meta stated in its 10-K filing that it expects an Irish regulator’s final decision within the next few months. Data transfers outside the EU could be halted if the authority deems Meta’s data privacy precautions insufficient.
It has previously been stated that if European officials and courts cannot agree on data transfer regulations, Meta/Facebook could leave the continent, but the company’s VP of Global Affairs and Communications Nick Clegg has stated that such a move could harm Europe’s small and medium-sized businesses, which rely heavily on targeted advertising.
Meta’s business may be in jeopardy, according to the new petition, if European legislation requires it to stop data transfers to the United States. To remove Facebook and Instagram the market would “significantly impact” Meta’s business, financial condition, and results of operations stated the SEC filing.
