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Meta says about 10% of its global ad revenue at risk from EU data flows order:
Meta's earning call yesterday was upbeat on better than expected revenue for the quarter. However buried in its disclosures to investors is a stark warning on looming regulatory risk it's facing in Europe — where a decision is expected in a matter of weeks (by May 12) that could see the tech giant ordered to suspend its transatlantic data flows.
"We expect the Irish Data Protection Commission (IDPC) to issue a decision in May in its previously disclosed inquiry relating to transatlantic data transfers of Facebook EU/EEA user data, including a suspension order for such transfers and a fine," Meta's CFO wrote in its Q1 2023 report.
We've covered the (very) long-running saga — which hinges on a clash between US surveillance laws and EU privacy rights — most recently here and here. So regular TechCrunch readers will already know that a key development Meta is hoping will save its bacon in Europe is the adoption of a new high level data transfer pact which aims to resolve the legal uncertainty around EU data exports.
[...] In its earnings report, Meta tells investors it's hopeful the new EU-US data framework will arrive soon enough to be implemented before the deadline for a suspension of its EU transfers — meaning, were these stars to align, it could reboot its claim to have an authorized mechanism for its EU transfers and flick the suspension order away — however the company also warns it "cannot exclude the possibility" that adoption won't happen soon enough to prevent such an order.
[...] During a call with investors, the social networking giant was asked about the potential impact on revenues if it is forced to suspend EU-US data flows on regulatory order. Responding, CFO Susan Li began by reiterating its hope that the new high level framework will save its bacon. However, if this sought for escape hatch fails to open in time, she warned investors Meta is facing a hit of around a tenth of its worldwide ad revenue — saying "roughly 10%" of this comes from ads delivered to Facebook users in EU countries.
(Score: 5, Insightful) by Snotnose on Tuesday May 02, @02:19PM (5 children)
Not seeing the problem here. The EU is killing parasites, the parasites aren't happy about it.
I just passed a drug test. My dealer has some explaining to do.
(Score: 2) by ikanreed on Tuesday May 02, @03:09PM (3 children)
Profit is inherently moral. It goes to the investors whose idle livelihoods are put at great risk by interfering moralists concerned with "individual privacy" and "de facto monopolies."
If they don't see the 15% annual returns they demand, some of them might have to work for a living.
(Score: 2) by GloomMower on Tuesday May 02, @04:24PM
> Profit is inherently moral. It goes to the investors whose idle livelihoods are put at great risk by interfering moralists concerned with "individual privacy" and "de facto monopolies."
And peoples pensions, retirement funds, IRAs, I believe 40% fall into this category.
I guess people eventually getting old counts as idle livelihoods.
Growth forever may be a house of cards, I can't see the future.
(Score: 2, Interesting) by Runaway1956 on Tuesday May 02, @08:11PM (1 child)
No, profit is optional.
Abortion is the number one killed of children in the United States.
(Score: 3, Touché) by Thexalon on Tuesday May 02, @09:53PM
I'm pretty sure your sarcasm detector was faulty.
But yes, it's rather weird that we live in a society that mostly follows the values of the Ferengi Rules of Acquisition, when we also have admonitions like "the love of money is the root of all evil" floating around.
The only thing that stops a bad guy with a compiler is a good guy with a compiler.
(Score: 4, Insightful) by Runaway1956 on Tuesday May 02, @08:10PM
I had the same idea, but I phrased it as a question: Who cares, and why should they care?
The internet doesn't belong to the corporations. Corporations own bits and pieces here and there, but the internet is public property. We, the public, pay for it in taxes, fees, subscription, etc ad nauseum - and sometimes we donate to make parts of the internet better. Like any utility, the internet belongs to the people.
If Meta can make a profit with the rules that we the people establish, that's alright. If they can't abide by the people's rules, they can just go bankrupt, sell off all their assets, and someone will manage to abide by the rules, while making a profit.
Abortion is the number one killed of children in the United States.