Get All Access for $5/mo

If Your Business Relies Heavily on Facebook, You'll Want to Keep an Eye on This Meta threatened to pull out of Europe over possible regulations.

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur Europe, an international franchise of Entrepreneur Media.

SOPA Images | Getty Images

If your business relies heavily on marketing or sales through Facebook or Instagram, you might want to start diversifying your marketing channels.

Meta, which owns Facebook, Instagram, and WhatsApp, said recently that it could shut down the two popular social media sites in Europe if it is not allowed to continue transferring user data back to the U.S., where the company is headquartered.

The company's annual report said, "If a new transatlantic data transfer framework is not adopted and we are unable to continue to rely on SCCs (standard contractual clauses) 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."

That grave announcement came after regulators in Europe began drawing up legislation that would impact how EU citizens' data gets transferred.

Earlier this month, Statista data revealed more people in Europe are using Facebook than ever before. In total, 427 million monthly active users access the site in the region. From the fourth quarter of 2012 to the second quarter of 2021, Facebook's monthly active European users boomed by 61 percent.

Those 427 million users are potential customers who can see ads and content from businesses. Moreover, as of last October, 28.2 million people in the United Kingdom were using Instagram, which launched Instagram Shopping in 2020. Users can shop from brands directly through the app, which makes advertising on Instagram even more appealing to small businesses.

Don't lose hope just yet, however, as lawmakers may put up a fight if Meta ever did try to leave. Parliament's Axel Voss tweeted in response, "I have always called for an alternative to the EU US #privacyshield to find a balanced agreement on data exchange + always called for #GDPR flexibility. However, #META cannot just blackmail the EU into giving up its data protection standards, leaving the EU would be their loss."

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

These Companies Offer the Best Work-Life Balance, According to Employees

The ranking is based on Glassdoor ratings and reviews.

Growing a Business

Why Business Owners Should Streamline Their Operations Now for Success in 2025

As the holiday season and year-end approach, business owners face heightened operational demands, from inventory management to spend control. By streamlining these processes and partnering with flexible suppliers, businesses can maintain efficiency, meet customer needs and focus on growth while navigating this busy period.

Business News

Here's What the CPI Report Means for Your Wallet, According to JPMorgan and EY Experts

Most experts agree that there will be another rate cut next week.

Science & Technology

Use This Framework to Successfully Integrate AI Into Your Business Operations

Here's how to ensure both innovation and compliance when using AI in your organization.