Facebook like many technology and service companies, do a much of their business through advertising. For this it is necessary to collect user data in order to provide advertisements related to their interests. Although this data is collected anonymously, the European Union is very strict with regard to user privacy. A few months ago, the so-called “Privacy Shield” was declared null and void, and has consequences for Facebook. So much so that even the platform (including Instagram) could disappear from Europe.
The Privacy Shield & is a measure that was applied in 2016. This allowed North American companies to transfer data of users from the European Union to the US. The Privacy Shield ban was enforced by the Court of Justice of the European Union (CJEU) after a user sued that the collection of data on servers in the United States did not provide an adequate level of protection as that is offered by the GDPR in Europe.
Little by little, the ban on this measure is being applied to US companies offering their services in Europe. This requires companies like Facebook to store user data on European servers and under no circumstances transfer it to servers in the United States.
This sequence is alarming for Facebook. Especially given that the company’s two main social networks, FaceBook and Instagram, cannot function normally in Europe . Especially since this data transfer is essential for Facebook to sell ads to companies on its platforms, they sold 208,000 million euros to 7.7,000 companies in Europe in the past year, according to Facebook itself.
Press to Facebook to stop data transfer
The problem is that The Commission of Irish Data Protection (DPC), is pressuring Facebook to implement these new measures and to stop transferring user data from Europe to the United States, an application that, despite being in Ireland, would affect the entire European Union.
For its part, Facebook has decided to use this injunction to prevent them from discontinuing their services in Europe. Yvonne Cunnane, Facebook’s chief of data protection and privacy, says “is unclear how these measures will allow the company to continue to operate with its services in the European Union.” At this time, a request has been sent to stop the order issued by the DPC until November next year.
If it is finally decided to end this transfer both Facebook and Instagram could no longer be operational in Europe . A decision that would affect millions of users and thousands of companies doing business with these applications. WhatsApp, an app that does not monetize through advertising, would not be affected.