In line with new European Union legislation which demands that firms who gather user data inside the EU keep and handle the data on computers in Europe. However, a portion of Facebook and Instagram’s data sits on US servers. In a filing to the Securities and Exchange Commission, Meta indicated it would simply cease delivering its Facebook and Instagram services in the EU if the firm failed to comply with new EU legislation.
However, Nick Clegg, Meta’s vice president of worldwide relations, feels this will be damaging to many firms in the EU. Many of these enterprises depend on the company’s services and promotion.
Last week’s financial report prompted Meta’s stock price to collapse 25 percent following the first daily active user reduction in Facebook’s history. Meta lost $10 billion in 2021 on its investment in the Metaverse. However, Meta’s assertions like these may simply be positioning itself in a better-negotiating position than truly taking action against its threat.
This new rule by the European Union will not just impact Facebook and Instagram. Many American corporations like Apple and others also have their servers in the U.S. The major reason why the EU wants its data on servers in Europe is because of data security. The U.S. rules enable American security services to access data on any server in the U.S. This implies that if your data is on an American server, it’s in the palm of the U.S. government.