The trouble did not stop there, but the company found itself in conflict with European countries over data collection and storage, as countries refuse to store the data of their citizens on American servers, which prompted CEO Mark Zuckerberg to threaten to close his company’s applications on the continent.
Zuckerberg’s threat to shut down my website and apps, “Facebook” and “Instagram” in Europe, came due to regulations aimed at impeding the collection of app data.
Meta said that if European data rules were not relaxed, the company would likely not be able to offer its “most important products and services”, including Facebook and Instagram, in the European Union.
Meta processes its data across the US and Europe, and the company says this is critical to the way it does business.
It is asking to be allowed to continue using the Transatlantic Data Transfer Framework called Privacy Shield, the legal basis the company used to make data transfers until it was revoked in July 2020, under new laws designed to protect Europeans’ data.
Zuckerberg’s threats to close his operations in Europe did not go unnoticed, but the response was direct and perhaps sarcastic from European leaders.
The new German Economy Minister, Robert Habeck, told reporters, during a meeting in Paris on Monday night, that he lived without “Facebook” and “Twitter” for 4 years after being hacked, and “life was wonderful.”
French Finance Minister Bruno Le Maire also stressed, speaking alongside the German minister, that “life would be very good without Facebook.”
a huge loss
Last week, Facebook announced its first-ever quarterly decline in daily users globally, as ads grew less than expected.
The massive drop in shares, which instantly wiped out nearly $200 billion in market value, shows that changing Facebook’s brand to parent parent company Meta is not enough to distract investors from problems in its core business.
Zuckerberg also suffered a loss of $ 29 billion of his personal wealth, the largest drop in wealth in a single day ever, after Meta Platforms’ earnings in the last quarter fell short of estimates.
The technological expert, Engineer Ahmed Sabry, says that the occurrence of this collapse was expected, and that the conversion of the company’s name to “dead” was betting to stop the collapse, because “Facebook” was tweeting alone in the world of social media and achieved great success, and the best example of this is the company’s private subscription. Which exceeded all expectations, and reached 10 times the normal rate, and it is one of the largest and strangest IPOs in history, given the confidence of investors in the company, in addition to Zuckerberg being a skilled marketer.
Sabri added to “Sky News Arabia”, that “the beginning of the collapse was the leaks of users’ privacy, and the continuous cessation of services, which destabilized everyone’s confidence because these malfunctions may recur in the future and at any time, in addition to the company’s reliance on making profits and not on serving users.”
He notes that “when the company was experiencing a meltdown, Zuckerberg announced the Metaverse technology and changed the company’s name, which led to its shares rising again.”
Sabri adds, “Meta is not ready to launch Metaverse at the moment, and it may take 3 years. On the other hand, there are two companies that have been ready for it for years and have experience, experience and tools, and it comes to Nvidia and IPC, which took advantage of Zuckerberg’s announcement of Metaverse and achieved Big gains.
And about “Metaverse”, the technology expert believes that “this world will not be for social networks, but belongs more to the world of electronic games, especially since game companies have been investing in the field for a long time, even Microsoft is trying to compete with it by acquiring the company (Action Blizzard) at a value exceeded $70 billion.
But the expert expects Meta to overcome the great crisis it is going through, as “Zuckerberg is able to find solutions to it and continue to compete.”