Meta might pull Facebook and Instagram from Europe over ad targeting
EU regulations are making it tough for Meta to target people with ads.
Facebook’s parent company, Meta, had a tough time last week. For the first time ever, daily user numbers actually dropped. Now, as noted in the company’s annual report to the Securities and Exchange Commission, Meta is threatening to pull core services over EU data regulations.
It comes down to the EU’s stance on data and how Meta sends data to American servers. Meta says it is imperative for business operations, the EU is currently standing firm (h/t iTWire).
Meta pulled no punches in its annual report, stating “we will likely be unable to offer a number of our most significant products and services, including Facebook and Instagram, in Europe,” if a compromise isn’t reached.
The social giant explains it like this:
“If we are unable to transfer data between and among countries and regions in which we operate, or if we are restricted from sharing data among our products and services, it could affect our ability to provide our services, the manner in which we provide our services or our ability to target ads, which could adversely affect our financial results.”
So, why now? Well, this has actually been an ongoing hurdle for Meta. The company outlines different methods it has been using. Some have been cut off completely due to GDPR regulations, while others have been under constant regulatory and judicial scrutiny.
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Will Meta actually pull its bread and butter from Europe? It seems highly unlikely. Especially considering the hit the company took just last week.
Not only did Facebook show its first drop in daily users ever, but stock prices also plunged due to the news. Would Meta be willing to give up its 309 million daily Facebook users in Europe? Doubtful.
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