If Meta is not permitted to transfer, store, and analyze data from European users on US servers, Facebook and Instagram may be shut down in Europe, according to a study.
This is due to Meta’s use of American servers, which are governed by the Privacy Shield and other model agreements, to store data from European consumers.
Currently, the EU is reviewing current data transfer agreements.
Cross-border data exchange, according to Meta, is crucial for its services and targeted advertising.
As a consequence, it previously relied on the Privacy Shield framework for transatlantic data transfers.
In July 2020, the European Court of Justice cancelled this agreement due to data protection violations. Since then, the EU and US have said they are drafting a new agreement.
Meta utilizes the Privacy Shield and Standard Contractual Clauses to handle data from European users on American servers.
Additionally, these sample agreements are being examined in Brussels and other parts of Europe.