Facebook’s Threat to Exit Europe—EU Waves Buh-Bye
Meta, Facebook’s parent, warned investors that it might need to pull out of Europe. Why? Because it might not have a legal basis for transferring users’ data outside of the GDPR zone.
Sounds like the nuclear option, right? But European politicians don’t appear to be concerned: “Bring it on,” they seem to say. It’s all the U.S. government’s fault, anyway.
Europe takes privacy super seriously. In today’s SB Blogwatch, we wish our lawmakers did.
Your humble blogwatcher curated these bloggy bits for your entertainment. Not to mention: Get it on the steppin’ stone.
Oh No EU Didn’t
What’s the craic? Sam Shead reports—“Meta says it may shut down Facebook and Instagram in Europe”:
“Rely on data transfers”
Meta has said it is considering shutting down Facebook and Instagram in Europe if it can’t keep transferring user data back to the U.S. … Regulators in Europe are currently drawing up new legislation that will dictate how EU citizens’ user data gets transferred.
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If SCCs [standard contractual clauses] can’t be used as the legal basis for transferring data, Facebook would have to silo off the majority of the data it collects on European users. … Ireland’s Data Protection Commission … could fine Facebook up to 4% of its annual revenue, or $2.8 billion.
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A Meta spokesperson [said] “The simple reality is that Meta, and many other businesses … rely on data transfers … to operate global services.” … The European Commission did not immediately respond to [my] request for comment.
SCCs? ELI5. Michiel Willems explains like we’re five—“Mark Zuckerberg and team consider shutting down Facebook and Instagram in Europe”:
“Not in line with the GDPR”
The key issue for Meta is transatlantic data transfers, regulated via the so-called Privacy Shield … agreements that Meta uses or used to store data from European users on American servers. … However, this treaty was annulled by the European Court of Justice in July 2020, because of data protection violations. Since then, the EU and the US did stress they are working on a new or updated version of the treaty.
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In addition to the Privacy Shield, Meta also uses so-called model agreements, or Standard Contractual Clauses, as the primary legal basis for processing data from European users on American servers. … The Irish Data Protection Commission told Meta in August 2020 … that the use of the model agreements [might not be] in line with the GDPR.
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Should IDPC indeed find that the model agreements are illegal, Meta may decide it is no longer feasible to offer some of its services across the EU.
But then the other shoe drops: William Horobin, Zoe Schneeweiss and Stephanie Bodoni pick it up—“We’re Fine Without Facebook, German and French Ministers Say”:
“We won’t be intimidated”
[The] veiled threat to quit Europe … was more like music to the ears of two top German and French politicians.
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“After being hacked I’ve lived without Facebook and Twitter for four years and life has been fantastic,” German Economy Minister Robert Habeck told reporters. … “I can confirm that life is very good without Facebook and that we would live very well without Facebook,” … French Finance Minister Bruno Le Maire [added].
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The European Union “is such a big internal market with so much economic power that if we act in unity we won’t be intimidated by something like this,” Habeck said. Meanwhile Le Maire listed ways in which European governments have challenged tech giants, including with privacy rules.
And this is somehow the U.S.’s fault. Who is explaining why? wright_is is: [You’re fired—Ed.]
“Requirements of GDPR”
The US Government … totally failed to fulfill its responsibilities with Safe Harbor, which was overturned because they failed to meet the requirements they had agreed to. So that was replaced by Privacy Shield, which the US Government totally failed to meet the requirements they had agreed to. And the EU even gave them nearly 6 years to comply, before declaring Privacy Shield null and void.
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The big problem is that they can’t track users without their permission. And they must still be able to use the service, even if they refuse to be tracked — that is one of the requirements of GDPR — and they can’t sell or share user information with third parties.
Where’s the silver lining? Here’s jhodge:
“Facebook has the resources”
It’s good to see this … coming to a head. A conflict like this … has been looming ever since the EU went in a fundamentally different direction than the US on privacy, and hopefully this will set a firm precedent.
Facebook has the resources to see that the matter is fully debated. If the end result is Facebook & Instagram pulling out of the EU, maybe that will make room for alternative services to emerge.
If Zuck doesn’t get his way, what might happen? squiggleslash bets thuswise:
“Misinformation will continue to spread”
My money is that if the US and EU don’t agree to laws that allow US social networks to operate in the US … then Facebook will spin off an EU company, to be owned and operated by Europeans, and license its software and trademark to that company. … Alas, this won’t kill the privacy sapping behemoth, it’ll neuter one aspect – notably the ability of the FBI to access Facebook’s data on European nationals, but how many of us care about that?
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The misinformation will continue to spread unabated. The nearest thing you might see to a reduction in that is the ability of Americans and Europeans to be subscribed to the same groups, but, honestly, the language barrier probably already does the same thing.
But Jogy zigs where others zag:
They have had a year and a half to try to comply and do data centers located in EU. Apparently, they chose not to, and now are trying to bully their way.
More drawer statements ahoy? ThatEffer knows how PR works:
I can’t wait to read Meta’s bull**** statement about how all businesses in Europe will fail because they won’t have the ability to advertise on Facebook.
Meanwhile, where do we go from here? Heed PinkyGigglebrain’s summary:
If the EU doesn’t back down somehow the political fallout of them preventing all the FB and Instagram addicts … from being able to get their Dopamine fix … could be ugly. But if the EU does back down you can kiss even the concept of online privacy goodbye. Or any kind of online rights for that matter.
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I wonder who is going to blink first. {grabs popcorn and large beverage}
And Finally:
You have been reading SB Blogwatch by Richi Jennings. Richi curates the best bloggy bits, finest forums, and weirdest websites … so you don’t have to. Hate mail may be directed to @RiCHi or [email protected]. Ask your doctor before reading. Your mileage may vary. E&OE. 30.
Image sauce: Christian Lue (via Unsplash; leveled and cropped)
