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Meta made some major headlines in February over speculation that they were threatening to leave the EU over uncertainties over certain EU-US data transfers mechanisms. In response to the allegations, Meta assured the public (and its investors) that this was not the case.

“Last week, as we have done in our previous four financial quarters, we disclosed that continuing uncertainty over EU-US data transfers mechanisms poses a threat to our ability to serve European consumers and operate our business in Europe.” – Markus Reinisch, Vice President, Public Policy Europe for Meta.


Let’s break this down, shall we? 💬



Essentially, the GDPR (General Data Protection Regulation) was put forth in 2016, which set certain regulations on how tech and marketing companies can collect and use consumers’ data. There has been some back-and-forth between the US and EU on the GDPR regulations, especially as they pertain to Big Tech companies.

Here, Reinisch is claiming that, without lifting certain regulations, Meta (more specifically, Facebook and Instagram) won’t be able to adequately serve European customers. In other words, insufficient access to data would mean Meta wouldn’t be able to personalize things like News Feeds, Suggested Content and Ads, at least not to the level that users expect. So as far as we’re concerned, this is less of a threat and more of a warning. Although ministers in France and Germany don’t appear to be overly bothered at all.


There’s no way to know what Meta’s long-term intentions are for certain. Though it’s worth noting that after reporting a 10 million drop in users during Q4 of 2021, Meta’s stock dropped nearly 30% – $251,000,000,000 in a single day. That’s the largest single-day drop in the United States’ history!

Given the significant loss, it’s no secret that Meta will be looking to shake things up to get themselves back on the right track. No, we don’t foresee them walking away from billions they can make from advertising, but they could pivot the way they go about it. And given their history of diversifying their business (adding Facebook and WhatsApp, for instance), we’d expect them to start branching out.


But what about businesses that rely on Facebook and Instagram Marketing?

Simple. Just as Meta needs to diversify their investments, your business needs to diversify its marketing. Putting all your eggs in one basket is beyond risky, especially when you consider the ever-changing digital climate we’re in. Just think about how different things are today vs 5 years ago.

So with that in mind, always have a proactive strategy when it comes to your business because if Meta were to leave the EU (and who knows, one day they might), what would it mean for your business? Consider where else your customers are spending their time online. It could be other social platforms, blogs, forums, etc. The point is, get to know your customers beyond Meta because no company should put all their faith in a single entity.



Panicking? Don’t ❌

The landscape of business is always changing, especially in the digital age. This is a lesson that we should all learn from and never forget. Never get overly comfortable with what is working today and always expect the unexpected… because in the blink of an eye, all you’ve worked for can be gone.

If Meta DOES decide to leave the EU, which again, we don’t think they actually will, it wouldn’t be for awhile. So for what it’s worth, you have time to plan. Make the time count!


If you find yourself with marketing-related questions, don’t hesitate to reach out to one of our experts. We love helping companies overcome obstacles and thrive in their niches 🌱

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