Facebook says it could be forced to leave EU over data regulation
Facebook Inc. says it might have to pull its services from countries in the European Union if it can’t transfer data to the U.S.
Earlier this month, Ireland’s Data Protection Commission announced that after an investigation it found that Facebook users in Europe did not have substantial protection from U.S. government surveillance. It said the company was in breach of European data protection laws, which could result in a fine totaling 4% of its global revenue.
This may not just affect Facebook. E.U. privacy laws dictate that any data sent from Europe to the U.S. should be protected to a certain degree. It seems that for some time there have been patches in place to ensure that the data can be transferred, although after the recent decision by the Irish regulator, things have become somewhat muddy.
Facebook has now responded. In a sworn affidavit, Yvonne Cunnane, Facebook Ireland’s head of data protection and associate general counsel, said in a roundabout way that Facebook has been put between a rock and a hard place.
“It is not clear to [Facebook] how, in those circumstances, it could continue to provide the Facebook and Instagram services in the E.U.,” she wrote.
At the moment, Facebook has been given time to fight its case without incurring fines. If Facebook loses the case, that could mean that it would lose its 410 million users in the EU, which would not only be a significant loss to them, but also to Facebook’s bottom line.
In the affidavit, Cunnane accused the Irish regulator of singling out Facebook and also of not giving the company enough time to respond — three weeks.
“The fact one person is responsible for the entire process is relevant to [Facebook’s] concerns, in respect of the inadequacy of the investigative process engaged in and independence of the ultimate decision-making process,” she wrote. “This gives rise to an apprehension that [Facebook] is not being treated equally. If [Facebook] alone is being investigated and subject to a suspension of data transfers to the U.S., this would be liable to create a serious distortion of competition.”
A Facebook spokesperson told VICE News today that the court document isn’t a threat to pull out of Europe, but it does outline what could happen to it, and other tech firms, if data transfers are no longer allowed.
Photo: Christiaan Colen/Flickr
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