Meta Threatens To Pull Facebook and Instagram From Europe If It Can't Target Ads

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"Facebook is threatening it will simply pull out of Europe altogether if it is no longer able to share data about European users with its U.S. operations, applications, and data centres," reports ITWire.

It's customary for regulatory filings to preemptively declare a wide variety of possible future hazards, and in that spirit a recently-filed Meta financial statement cites a ruling by the EU's Court of Justice (in July of 2020) voiding a U.S. law called the Privacy Shield (which Meta calls one legal basis for its current dara-transferring practices). Though courts are now determining the ruling's ramifications, ITWire notes that "with the European General Data Protection Regulation (GDPR) well in force, the U.S. Privacy Shield principles were found non-compliant and consequently invalid." So while that ruling affects every American company, including cloud companies like Google, Microsoft, and Amazon, it's Facebook/Meta that "says stopping transatlantic data transfers will have a devastating impact on its targeted online advertisements capabilities."

Read it yourself, in Meta's own words:

"If a new transatlantic data transfer framework is not adopted and we are unable to continue to rely on Standard Contractual Clauses [now also subject to new judical scrutiny] 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, which would materially and adversely affect our business, financial condition, and results of operations."

Of course, the filing also cites other hazards like the possibility of new legislation restricting Facebook's ability to collect data about minors, complaining that such legislation "may also result in limitations on our advertising services or our ability to offer products and services to minors in certain jurisdictions."

And in addition, "We are, and expect to continue to be, the subject of investigations, inquiries, data requests, requests for information, actions, and audits by government authorities and regulators in the United States, Europe, and around the world, particularly in the areas of privacy, data protection, law enforcement, consumer protection, civil rights, content moderation, and competition..."

"Orders issued by, or inquiries or enforcement actions initiated by, government or regulatory authorities could cause us to incur substantial costs, expose us to unanticipated civil and criminal liability or penalties (including substantial monetary remedies), interrupt or require us to change our business practices in a manner materially adverse to our business, result in negative publicity and reputational harm, divert resources and the time and attention of management from our business, or subject us to other structural or behavioral remedies that adversely affect our business."

(Thanks to Slashdot reader juul_advocate for sharing the story!)