Meta To Shut Down Facebook And Instagram? Data- Sharing Dispute Surfaced

Meta has threatened to shut down its popular social media platforms in Europe, including Facebook and Instagram. The company has filed a report with the Securities and Exchange Commission, stating that if a new transatlantic data transfer framework is not implemented, it will be compelled to cease its products and services.

The problem is that the most recent EU law mandates corporations like Meta to collect and process user data within the EU, i.e. on European servers.

Nevertheless, this isn't the case with Facebook and Instagram. Both services collect user data on servers in the United States and Europe, according to the corporation, which is critical for its entire operation and ad targeting.

Data- Sharing Dispute Needs To Be Addressed

Meta would shut down if another transatlantic data transfer isn't taken on and if the company has to depend on SCCs or depend upon another elective method for data transfers from Europe to the United States. Meta wouldn't be able to offer some of its most critical products and services, including Facebook and Instagram, in Europe, which would tangibly and antagonistically influence our business, monetary condition, and aftereffects of activities

Following this current, Meta's VP of Global Affairs, Nick Clegg, told London-based CityAM paper that the new EU rules would gravely affect a ton of organizations in Europe, who depend on the administrations and advertisements presented by Facebook.

Several reasons have hampered the social media giant's income development. One of them is Apple's new privacy features in iOS 14.5. In April 2021, Apple released the ATT (App Following Transparency) feature, which allowed users to prohibit apps from tracking them across services.

Facebook And Instagram Might Shut Down

Both Meta and Facebook appear to be having difficulties. The corporation recently made waves when it revealed that in Q4 2021, Facebook's DAUs (Daily Active Users) fell by a large margin. When the business released its quarterly report, Facebook's stock dropped by roughly 25%, wiping out around $200 billion in market value.

The majority of Meta and Facebook's revenue comes from targeted or tailored adverts. Apple's new privacy policy, on the other hand, prohibited corporations from tracking customers' behaviour, resulting in a significant loss. This privacy modification, which was enabled by about 80% of iOS users, also affected other social media platforms like YouTube, Twitter, and Snap.

The revenue of Meta and Facebook is also affected by the younger generation's changing preferences. People are more interested in generating Reels on Instagram these days, and they spend less time on Facebook, which implies less income.