Telecommunications-related services companies usually collect data for different reasons, mainly to analyze behavioral metrics but also, as Facebook, Google and many others do, for advertising purposes.
But Europe is making this more and more complicated thanks to the cancellation of the ‘Privacy Shield’.
The cancellation of the ‘Privacy Shield’ or privacy shield, the agreement sealed in 2016 between the United States and Europe, begins to require companies outside of Europe to leave the data in European citizens on their soil.
Thus, Ireland has communicated to Facebook that the data of European citizens must remain in Europe and not be sent back to the company’s servers in the United States of America.
And this, according to Facebook, endangers the viability of two of its main social networks: Facebook itself and Instagram.
Brake request until November
As we said earlier, Ireland wants to end the sending of usage data of European citizens to the United States and, with this, it jeopardizes the metrics needed by Facebook to build its system of selling advertising to companies.
Hence, from the company led by Mark Zuckerberg, a petition has been sent to the High Court of Ireland to stop the Irish order until November.
“It is not clear how [Facebook], in these circumstances, could continue to serve Facebook and Instagram in the European Union”
Those words, collected by Reuters, are included in the petition by which Facebook has requested to be able to continue operating normally until at least the month of November.
The petition would have been prepared by Yvonne Cunnane, Facebook’s head of data protection for the company in Ireland.
The order appears to have been issued from Ireland but the effect would take place throughout the European Union.
The Irish Data Protection Commission, based on the aforementioned cancellation of the ‘Privacy Shield’ in Europe, thus puts Facebook on the ropes with a move that would cost the company 4% of its annual income.
Thus, Facebook has left the door to close both Facebook and Instagram if it finally declares that its operation is unfeasible under the new conditions.
Something that would not only leave Europeans without both social networks but would affect more than 5,000 companies.