Mark Zuckerberg is not going through his best moment. Facebook’s quarterly results presentation has led to a multi-billion dollar drop in shares, partly because many investors have seen that the social network has reached its zenith, and partly because the bet on the metaverse is not yet seen as a winning bet.
The company’s annual report includes a multitude of data, but one seems to have gone somewhat unnoticed until now.
The company refers in this report to the obligation imposed on it by European bodies to process all the data of the citizens of the old continent on servers hosted here, without being able to send the data to the United States.
Meta estimates that if they are unable to analyze these data as they have been doing so far, they may have to close Instagram and Facebook in our continent. Specifically what the report states is that if a new framework for transatlantic data transfers is not adopted and they cannot continue to rely on SCCS or other alternative means of data transfers from Europe to the United States, they will likely be unable to offer a number of our most important products and services, including Facebook and Instagram, in Europe, something that would materially and adversely affect their business, financial condition and results of operations.
Facebook communications officials have not denied this information, and they make the case that this could be terribly damaging to small businesses. Obviously, this is a lobbying strategy vis-à-vis European governments.
This mention in Facebook’s annual report is not the first that the company has made regarding the possibility of leaving Europe. Already in 2020 the company hinted that if conditions were not favorable to them they might have to stop operating on EU territory.
Already at the time Facebook indicated that this was not a threat, but a reality, something that for practical purposes is irrelevant as long as the end is that the company leaves, or not, European countries.