Meta has revealed that it would consider shutting down Facebook and Instagram across Europe if it is unable to transfer user data from the EU to the US.
The company issued a warning in its annual report as European lawmakers are drawing up an improvised bill to govern how EU citizens’ user data will be handled.
EU laws require that the companies that gather user data within the union should store and process data only on European servers. However, Facebook and Instagram process this data on both the European and the US servers.
In a report presented to the Securities and Exchange Commission, Meta suggested that if the company fails to comply with the latest EU regulations, it will discontinue its most significant products and services, including Facebook and Instagram within the union. Nick Clegg, VP of Global Affairs at Meta argued that the move would prove disastrous to a number of businesses in the EU that rely on the services provided by the company.
Meta’s stock plummeted by 25% as the social media giant lost daily active users for the first time in its entire history. This could possibly mean that the company is actively trying to gain a more beneficial hand in the negotiation game than actually acting up on its threats.