Meta has threatened to shut down some of its services in Europe, including Facebook and Instagram, if it cannot circumnavigate some of the transatlantic data transfer restrictions outlined in the EU's GDPR regulations.

As part of its annual report, the company claimed that "evolving" regulations could result in an inability to operate in some European regions: "If we are unable to transfer data between and among countries and regions in which we operate, or if we are restricted from sharing data among our products and services, it could affect our ability to provide our services," it wrote.

Meta points to a few regulatory decisions and changes made in 2020 that adversely affect the transfer of user data between the EU and the US. And, if they are not addressed nor its previously agreed standard contractual clauses (SCCs) are not upheld, it might not have a choice but to cease operation in European countries: "If a new transatlantic data transfer framework is not adopted and we are unable to continue to rely on SCCs or rely upon other alternative means of data transfers from Europe to the United States, we will likely be unable to offer a number of our most significant products and services, including Facebook and Instagram, in Europe," it stated.

After GDPR regulations were introduced in EU member states, Meta (then Facebook) was given certain exemptions to enable it to transfer required data betweem its server centres in Europe and the States. However, measures such as the Privacy Shield transfer framework have been invalidated. The company's use of SCCs have also been under judicial review.

The upshot of this is that unless Meta is permitted to transfer personal data between its servers for each of its services, it will no longer be able to run them.

The company's global head of communications and former UK politician, Nick Clegg, revealed to City A.M. that restrictions won't just hurt Meta: "A lack of safe, secure and legal international data transfers would damage the economy and hamper the growth of data-driven businesses in the EU, just as we seek a recovery from Covid-19," he said.

"The impact would be felt by businesses large and small, across multiple sectors. In the worst case scenario, this could mean that a small tech start up in Germany would no longer be able to use a US-based cloud provider."

A Meta Spokesperson elaborated: "We have absolutely no desire and no plans to withdraw from Europe, but the simple reality is that Meta, and many other businesses, organisations and services, rely on data transfers between the EU and the US in order to operate global services," they added.