Facebook and IG leave Europe - what's the impact
1. $Meta Platforms(FB.US$ Meta Platforms' problems don't seem to go away. It is as though the haters have been waiting for this moment to pile on the company's misery. The latest debacle is that Facebook and IG might be pulled out from Europe if the user data couldn't be transferred back to the US.
2. There is a new transatlantic data transfer framework that may change the way Meta handles EU citizens' data.
3. It is common to see governments around the world are rewriting rules and negotiating with the big tech companies in their own ways. It just shows how much power these big tech are commanding - to the point that they can influence election outcomes.
4. I like how Lilian Li from Chinese Characteristics puts it across - US innovate and not regulate. China innovate and then regulate. Europe regulate and don't innovate.
5. It is generally accurate as we have seen more innovations coming from US and China in the last decade, than in Europe. Europe on the other hand had more success in collecting fines on the US big tech.
6. Meta is trying a scare tactic to pull out of Europe. It is about who needs who more. Haters will say Europe don't need FB or IG but the supporters otherwise. The world is divisive like that.
7. Europe contributed $29b to Meta's revenue in 2021 or about 25% of the overall revenue. That's huge. It is the second largest revenue contributor after the US & Canada (47%). If Facebook is a paid service without ads so data collection isn't necessary, a European would have to pay $19.68 per month to use it. Would they? I doubt so.
8. So I don't think Meta is serious about pulling out of Europe because it cannot afford to do so especially when its revenue growth has slowed down and the investment into metaverse has not bear fruits yet. It is more like a tactic to gain negotiation space.
9. This is similar to Google's playbook where it threatened to pull out of Australia. The outcome was that Google will be spending $736m in Australia in the next five years to help Australia's economy with its digital transformation.
10. Hence, I think that Meta would eventually come to a middle ground with the Europeans. But some degree of monetary compensation would be necessary.
2. There is a new transatlantic data transfer framework that may change the way Meta handles EU citizens' data.
3. It is common to see governments around the world are rewriting rules and negotiating with the big tech companies in their own ways. It just shows how much power these big tech are commanding - to the point that they can influence election outcomes.
4. I like how Lilian Li from Chinese Characteristics puts it across - US innovate and not regulate. China innovate and then regulate. Europe regulate and don't innovate.
5. It is generally accurate as we have seen more innovations coming from US and China in the last decade, than in Europe. Europe on the other hand had more success in collecting fines on the US big tech.
6. Meta is trying a scare tactic to pull out of Europe. It is about who needs who more. Haters will say Europe don't need FB or IG but the supporters otherwise. The world is divisive like that.
7. Europe contributed $29b to Meta's revenue in 2021 or about 25% of the overall revenue. That's huge. It is the second largest revenue contributor after the US & Canada (47%). If Facebook is a paid service without ads so data collection isn't necessary, a European would have to pay $19.68 per month to use it. Would they? I doubt so.
8. So I don't think Meta is serious about pulling out of Europe because it cannot afford to do so especially when its revenue growth has slowed down and the investment into metaverse has not bear fruits yet. It is more like a tactic to gain negotiation space.
9. This is similar to Google's playbook where it threatened to pull out of Australia. The outcome was that Google will be spending $736m in Australia in the next five years to help Australia's economy with its digital transformation.
10. Hence, I think that Meta would eventually come to a middle ground with the Europeans. But some degree of monetary compensation would be necessary.
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Cow Moo-ney : Always enjoy reading your POVs. Love point 4 haha. Anyway, I am also of the view that Meta will not pull out from Europe, as that will hurt their top and bottom lines massively. It will likely end up with Meta pumping in cash to meet Europe regulatory’s requirements
Giovanni Ayala : Yeah there are alot of selfish people in the control game
MARVIN ALVARADO sr : meta is a jok
MARVIN ALVARADO sr : why no chege only name act desame