Meta might just take social media sites Facebook and Instagram off the market for its European users.
Regulators from the continent are currently deciding how to regulate the way data travels from Europe to North America since the last such agreement was invalidated almost two years ago by the European Court of Justice.
But Meta is already speaking out against the potential of a new agreement, saying in an annual report published on Thursday that it was “likely be unable to offer a number of our most significant products and service, including Facebook and Instagram, in Europe.”
The European Commission said talks with the U.S. have picked up, but they “take time given also the complexity of the issues discussed and the need to strike a balance between privacy and national security,” a Commission spokesperson wrote in a statement to Bloomberg.
“Only an arrangement that is fully compliant with the requirements set by the EU court can deliver the stability and legal certainty stakeholders expect on both sides of the Atlantic,” they added.
Facebook unstable after a record-setting crash last week
“This isn’t simply a disappointing quarter but rather an existential moment for Meta,” said Vital Knowledge founder Adam Crisafulli to Forbes. “Investors will be forced to take a long and hard look at the company’s competitive position and consider whether it isn’t heading into a prolonged period of subpar performance — this will make it hard for the stock to quickly rebound.”
The quarterly earnings call found that Facebook has lost a million daily active users, which is a dramatic new low for the once-dominant social media platform. Other Meta-owned sites like Instagram and WhatsApp have also stalled in their growth rates. The Meta labs were also down $10 billion from their Reality Labs division, the branch working on the VR and AR experiences marketed as being the future of the company.
Zuckerberg acknowledged that Meta and its group of social media platforms have been losing the fight against the uber-popular video-sharing app TikTok.
“People have a lot of choices for how they want to spend their time, and apps like TikTok are growing very quickly,” he said in a statement.