Meta threatens to pull Facebook and Instagram from the European market: Implications for the music industry
Meta Platforms, Facebook’s parent company, is considering leaving Europe if it is no longer able to share European user data with the United States. This will be of interest to European artists and labels. This message, which can be interpreted as a direct threat, was contained in a document filed with the United States Securities and Exchange Commission (SEC).
This isn’t the first time the company behind Facebook, WhatsApp and Instagram has pulled off this “trick”. The warnings follow what happened in 2020, when privacy regulators in Ireland informed Facebook that it could no longer use standard contractual terms to comply with privacy standards when transferring data to third parties. United States, known as the Privacy Shield. Personal data is less well protected in the United States than in Europe, according to the European Court of Justice. Halting transatlantic data transfers, Facebook immediately warned, could be disastrous for the company. In order to provide tailored online advertisements, the company relies on the processing of user data.
The Irish data protection regulator is currently investigating. As a result, Meta is still awaiting a final verdict on the lawsuit. It is possible that this will happen in the first part of this year. In this context, Facebook has issued a warning that “we will probably not be able to offer some of our core products and services, such as Facebook and Instagram, in Europe” unless a viable solution is found.
The case began with a complaint filed by Austrian privacy activist Maximilian Schrems against Facebook Ireland, the company’s European headquarters, several years ago. Schrems had protested to the Irish Data Protection Authority against the transfer of data from Facebook Ireland to its parent company in the United States.
Meta’s quarterly results are due out on Wednesday, and a rep pointed out that development for the Metaverse isn’t the company’s primary focus. He also said the new direction has not resulted in any significant reduction in employment for the current teams.
“There will be economies and entire countries digitally developed using VR/Web3, and we’re only scratching the surface,” he said, referring to next-gen metaverse technology. “This is the future of science fiction, and Meta has made a bold move to make it a reality,” he said, noting that Meta has been leading the way with virtual reality through products like its Oculus headsets.
Facebook’s foray into the metaverse started at the top. Mike Schroepfer, the longtime chief technology officer, said in September that he would step down by the end of 2022. In his place, Zuckerberg has appointed Andrew Bosworth, sometimes known as “Boz”, who has led the development of products such as the Oculus. Ray Ban Stories headphones and smart glasses over the past few years.
In October, the company announced that over the next five years it would create 10,000 metaverse-related jobs in the European Union. That same month, Zuckerberg revealed that Facebook would be renamed Meta and pledged billions of dollars to the project.
Employees say Reality Labs is now at the forefront of the company’s metaverse transition. Product development, engineering and research workers have been invited to apply for new positions there, the sources say, while others have been promoted from social media divisions to oversee the same functions. with a focus on the metaverse.