Facebook
Meta's advertising juggernaut could be in further jeopardy, pending the outcome of an inquiry by the Irish Data Protection Commission (IDPC) that may prevent it from using Standard Contract Clauses (SCCs) from enabling the transfer of data from the E.U. to the U.S. With a decision due early this year, Meta noted that it might seek to curb its operations if the inquiry ends negatively.
"If a new transatlantic data transfer framework is not adopted and we are unable to continue to rely on SCCs 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," Meta noted in its disclosure. "[This includes] Facebook and Instagram, which would materially and adversely affect our business, financial condition, and results of operations."
Previously, pre-Meta Facebook had relied upon the Privacy Shield agreement between the United States and European Union to transfer data of European citizens overseas. The revelations by Edward Snowden that the National Security Agency was harvesting information from American citizens, however, triggered privacy complaints in Europe. The European Court of Justice would later rule that Privacy Shield didn't provide adequate protection for European data.
Negotiations to replace Privacy Shield are underway but may not be completed fast enough if Irish regulators ax SCCs. European regulators have mainly been uncompromising on data protection standards. However, with bipartisan sentiment largely against big tech over similar issues in the U.S., there is likely enough common ground to meet in the middle.
For Meta, it's an additional insult to the crippling injury of losing over a quarter of its share value last week. Facing declining users and other obstacles such as Apple's privacy changes, the future is looking awfully dark for Meta.
