Facebook Threatens to Leave Due to Proposed New Data-Sharing Regulations

While TikTok remains in the firing line due to concerns that it may be sharing data on US citizens with the Chinese Government, the case may have also highlighted rising global concerns over data sovereignty, and the risks associated with sharing user data between nations.

Earlier this month, the European Union privacy regulator sent a preliminary order to Facebook which called for it to suspend data transfers about its EU users back to the US. According to the order, EU officials are increasingly concerned about potential surveillance practices by the US Government, and are now looking to limit such by restricting the flow of user information.

That would essentially force Facebook to keep EU user data in Europe, and implement new restrictions on data-sharing between nations. Which, of course, would be expensive, restrictive and would make things increasingly complicated for The Social Network.

And now Facebook has issued an official response, saying that, if such rules are implemented, it may be forced to stop operating both Facebook and Instagram in Europe entirely.

As reported by Vice, Facebook noted that:

“If the decision is upheld, “it is not clear to [Facebook] how, in those circumstances, it could continue to provide the Facebook and Instagram services in the EU,” said Yvonne Cunnane, who is Facebook Ireland’s head of data protection and associate general counsel.”

Facebook and Instagram have more than 410 million combined users in the EU region, and all them, theoretically, would lose access to both platforms, if Facebook were to follow through with this threat.

Of course, that’s not very likely. Not only would Facebook lose a lot of money and market share, but it would also be a drastic action to take in response to data privacy measures. A more likely scenario would eventually see Facebook forced to establish EU-only data centers, which may be the eventual outcome.

But the fact that Facebook would threaten a full pull-out underlines the significance of the concern, and the rising concerns over data-sharing between nations.

Facebook actually threatened similar recently in Australia, which is seeking to implement new regulations that would force both Facebook and Google to pay Australian news publishers for the use of their content.

In response to the proposed Australian regulations, which Facebook says are ‘counterproductive’, the company has also noted that it would also have to:

“…reluctantly stop allowing publishers and people in Australia from sharing local and international news on Facebook and Instagram.”

That’s not the same as a full ban, but the threat matrix is the same – if you want to implement tougher restrictions, we’ll simply stop serving that element.

reference

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