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Facebook & Instagram will remain in the EU after all

Recently we reported on the rumor that Meta wanted to take its social networks off the European market. It was said that the giant US corporation would no longer be able to offer Facebook and Instagram in particular to customers based in Europe. Now the tech company has clarified that there is no truth in this rumor. One would like to continue to operate in Europe.

Meta wants to stay in Europe

The parent company of Facebook and Instagram faced the rumor that they had allegedly threatened to withdraw from Europe. Now, apparently, we’re smarter. Indeed, in a clear clarification, none other than Meta’s European manager, Markus Reinisch, has spoken out:

“Meta is absolutely not threatening to leave Europe”

The rumor mill began to bubble not without reason. The cause was a stock exchange announcement by Meta, which was issued last week. From this it emerged that the company from the USA.

“probably a number of our key products and services, including Facebook and Instagram, can not offer in Europe”

The reason for the whole thing was probably the uncertainty around the issue of data protection. In particular, the further processing of personal user data in the U.S. is the EU for some time a thorn in the eye. The protection against access by the US intelligence service to information from EU citizens is too inadequate. Meta does not like this at all, of course.

Honesty is the best policy?

Whether the whole thing was some kind of threat or not, we will probably never know. What is certain is that Meta is at least now clearly distancing itself from the accusations. Instead, according to Fleischer, the company’s vice president for public policy in Europe, it wanted to be honest with its business partners:

“Like all listed companies, we are required by law to disclose material risks to our investors”

In particular, there is a great deal of uncertainty as to whether the ever-increasing data protection in Europe might not become an insurmountable obstacle for Meta and its social networks. After all, it is precisely a basic concept of the group to process globally collected data in the USA. Consequently, one can certainly understand Fleischer when he affirms

“that continued uncertainty about data transfer mechanisms between the EU and the U.S. poses a threat to our ability to serve European consumers and operate our business in Europe.”

Here, corporate interests clearly collide with the privacy of European citizens.

Not the first time

Incidentally, this is not the first time that Meta has made such allusions in the context of its stock exchange announcements. Already in 2018, the parent company of Facebook and Instagram pointed out corresponding grievances. The crucial difference between then and now, however, is that this year’s stock market report explicitly talks about Instagram and Facebook. Another difference was the choice of words themselves. Four years ago, for example, it was still said that it “may” be necessary to restrict its business in Europe somewhat. In comparison, the latest announcement sounds much more drastic. This is not by chance.

Tech corporations from the US in particular are currently facing increasingly strict data protection regulations in the EU. What is of great benefit to us citizens puts companies like Facebook and Instagram in chains. After all, their economic concept is based precisely on collecting data that is useful for advertising. So it’s hardly surprising that the social networks are increasingly clashing with the data protection authorities of EU members. As recently as August 2020, Facebook was ordered by the Irish data protection authority DPC to stop forwarding the personal data of European users to the US. A year later, the High Court upheld that request after Facebook took legal action against it.

Meta is not alone

If Fleischer’s statements are to be believed, Meta is not an isolated case. Other companies have also pointed out that it is difficult to take place in the European market under the current conditions. According to his data.

“at least 70 other companies from various industries, including ten European companies, the risks associated with data transfers in their revenue records also addressed.”

Meta itself hopes this will improve the situation. The focus is not necessarily softened data protection regulations. Instead, like many other tech companies, the group wants certainty. After all, Meta is currently waiting in suspense for a ruling from the ECJ. This is to decide on the so-called Privacy Shield agreement.

German government is not afraid of Meta’s threats

Whether there is any threat at all in the stock exchange announcement by the parent company of Facebook and Instagram depends, of course, on one’s own attitudes towards social media. To some, a future without them even seems desirable. For example, Bruno Le Maire, Minister of the Economy in France. The latter expressed himself with the following words:

“I can confirm that life without Facebook is very good and that we would live very well without Facebook. Digital giants must understand that the European continent will resist and reaffirm its sovereignty.”

The German Economics Minister, Robert Habeck (Greens), agreed with his French counterpart on this, citing personal reasons:

“After a hack, I’ve been living without Facebook and Twitter for four years, and it’s fantastic.”

All calculation on the part of Meta?

Even though the US company’s stock market announcement may not have been a threat, it seems to have been at least a hint with a fence post. Regardless of how the company meant it, it simply overplayed its hand. After all, politicians like Habeck didn’t really react as if they were afraid of the tech companies leaving. In the end, the parent company of Facebook and Instagram had to turn tail and saw itself forced to the now published clarification.

Certainly, in the long run, it is anything but advisable for Meta and comparable companies to exert too much pressure on politicians. After all, events such as those in Ireland show that many social networks in our country operate in a legal gray area. Sooner or later, however, Meta & Co. will have to comply with EU data protection regulations. Not the other way around. Leaving due to too harsh specifications is out of the question for the time being. After all, the market in Europe is simply too lucrative for the company.

Simon Lüthje

I am co-founder of this blog and am very interested in everything that has to do with technology, but I also like to play games. I was born in Hamburg, but now I live in Bad Segeberg.

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Recently we reported on the rumor that Meta wanted to take its social networks off the European market. It was said that the giant US corporation would no longer be able to offer Facebook and Instagram in particular to customers based in Europe. Now the tech company has clarified that there is no truth in … (Weiterlesen...)

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