A court ruling prevents the parent company of Facebook and Instagram from transferring data from European users to its headquarters in the United States.
Meta, the parent company of Facebook and Instagram, threatened with the possibility of closing its services in the countries of the European Union (EU) due to a court ruling that prevents it from transferring data from European users to its headquarters in the United States.
in his last report to the US Securities and Exchange Commission. (SEC, for its acronym in English), the company from Menlo Park (California, USA) explains that the ruling of the Court of Justice of the European Union (CJEU) of July 16, 2020 could have consequences for its ” ability to provide services.
If we are not allowed to transfer data between countries and regions in which we operate, or if we are restricted from sharing data between our products and services, the ability to provide our services could be affected. .
The fundamental reason for this possible “impact” on its services is the difficulty that the greater privacy restrictions pose in being able to personalize online ads, which is Meta’s main source of income.
Specifically, the firm that until October of last year was called Facebook cited the invalidation by the European Justice of the so-called “shield of protection”, an agreement between the EU and the US so that companies can transfer user data between continents.
The court’s decision forces the European Commission (EC) to review the regulations. The Commission is also holding open negotiations with the US government to reach a new successor agreement to the “protection shield” that complies with the court ruling.
Source: Eitb
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