Facebook and its parent company Meta are going through tough times. After publishing its results for the last quarter of last year, its value on the stock exchange fell by an unprecedented $251 billion (about 5,3 trillion crowns) and now it has problems with new EU laws that require user data to be stored and processed exclusively on European servers . In this context, the company stated that it may be forced to shut down Facebook and Instagram on the old continent because of this.
Facebook currently stores and processes data in Europe and the US, and if it has to store and process it only in Europe in the future, it will have a "negative impact on the business, financial condition and results of operations," according to Meta's vice president of global affairs, Nick Clegg. The processing of data across continents is said to be essential for the company – both from an operational point of view and for targeting advertising. He added that the new EU rules would have a negative impact on other companies as well, not just the big ones, across multiple sectors.
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"While European policymakers work on a long-term sustainable solution, we urge regulators to take a proportionate and pragmatic approach to minimize business disruption to the thousands of companies that, like Facebook, rely in good faith on these secure data transfer mechanisms." Clegg said to the EU. Clegg's statement is true to some extent - many companies rely on Facebook and Instagram ads to thrive, not just in Europe but around the world. The possible "closure" of Facebook and Instagram in Europe would thus have a significant adverse effect on the business of these companies.
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