TECH NEWS – A big company now known as Meta is “warning” that Facebook and Instagram could pull out of the European Union if they don’t make it easier for companies to transfer data. The 2020 decision could affect Facebook as a gaming platform and Quest virtual reality.
Facebook has been rebranded globally, with a new name adopted in 2021: Meta. The company owns a number of apps and platforms, which Meta Quest 2, through its virtual reality tool, plays a strong role in the video game industry, as well as other aspects such as streaming video games on Facebook or through the company’s own games.
However, all this could be shaken on European soil if a threat in a document written by Meta is fulfilled. In this document, filed with the US Securities and Exchange Commission (SEC), the company warns the European Union that it could pull Facebook and Instagram from EU territory if they are not allowed to share information between Europe and America.
The conflict stems from a ruling by the European Court of Justice (CJEU) in 2020, which ruled that the personal data transfer mechanism between the EU and the US is not valid. The company relies on the so-called Privacy Shield (or Privacy Shield), a framework for data transfers between territories, which is an important consideration when creating advertisements and other businesses.
“If a new transatlantic data transfer framework is not adopted, and we are unable to continue to use PPAs or other alternative means to transfer data from Europe to the United States, we may not be able to offer many of our key products and services, such as Facebook and Instagram, in Europe, which would adversely affect our business, financial condition and results of operations,” the statement said.
“If we are unable to transfer data between the countries and regions in which we operate, or if we are restricted from sharing data between our products and services, our ability to provide our services, the way we provide our services or our ability to target advertising could be affected, which could negatively impact our financial results.”
The importance of data is well known to many around the world, as are the permissions we give to apps and platforms to collect personal data.The implications of the 2020 decision have not yet come into effect, but Meta has acted now because it expects to apply in the first half of this year, at which time it will suspend data transfers between the EU and the US.
Depending on the final decision of the courts, and whether the consequences are ultimately as radical as they might be, this problem with user data could affect Meta Quest 2, in addition to the well-known social networks that are also popular in our country. The VR device has been bringing in more and more money, with the associated online store exceeding $1 billion in revenue and strong growth expected in 2022.
Source: Mashable
