IT House February 7 news that a new EU law requires companies that collect user data within the EU to save and process data on servers in Europe. However, facebook and Instagram data is partly in U.S. servers.
In a report to the Securities and Exchange Commission, Meta said it would simply stop offering its Facebook and Instagram services in the EU if the company fails to comply with the new EU regulations. Nick Clegg, Meta's vice president of global affairs, believes that this will be detrimental to many businesses in the EUROPEAN that rely on the services and advertising provided by the company.
It House learned that last week's financial reports plunged 25 percent in Meta's stock price after Facebook's first daily active user decline in its history, and Meta lost $10 billion in 2021 on its investment in Metaverse. However, meta statements like this may simply want to put itself in a more favorable negotiating position, rather than actually taking action against its threat. (IT House)