Facebook recently voiced against European regulators who are currently investigating the company’s data collection methods. If found guilty, the social networking firm would have to pay millions of euros in fines and might be compelled to reconsider its operations in the region.
Investigations could affect smaller internet companies, users
In February, Belgium employed two organizations, part of the country’s iMinds digital research center, to probe into Facebook’s (NASDAQ:FB) terms of service updates. The investigation found that the social networking company is violating laws in the European Union. In response, Facebook rejected the allegations and claimed that its updates have been in compliance with the laws. After this incident, privacy regulators of countries such as Spain, France, Germany, Italy, etc. launched their independent investigations into the company’s data collecting practices.
Founded in 2007 by Dov Gertzulin, DG Value is a value-focused investment firm. The firm runs two primary investment strategies, the diversified DG Value Funds and the concentrated DG Concentrated strategy. Q3 2021 hedge fund letters, conferences and more The flagship DG Value Fund was launched in 2007, specializing in middle-market distressed situations and event-driven Read More
Regarding these investigations, Facebook (NASDAQ:FB) Vice President of Public Policy in Europe Richard Allan claimed privacy authorities are undermining European law. Moreover, Allan also suggested that the inquiries will augment the company’s costs and could, in turn, affect consumers in the specified countries, by causing delays or a complete absence of the company’s forthcoming services. In addition, Allan indicated that smaller internet companies in the region would be affected the most by the ongoing investigations.
“…People in Europe would notice new features arriving more slowly, or not at all. The biggest victims would be smaller European companies. The next big thing might never see the light of day,” Allan said in a sort of warning tone.
Facebook (FB) following all laws
The social network, which has 1.4 billion users, has its region’s head office situated in Dublin, Ireland. Earlier this month, Facebook (NASDAQ:FB) claimed that individual European countries do not possess the authority to scrutinize any business. Also the company indicated that once a firm has been approved by the country where it has its headquarters, it can function anywhere in the European Union.
Along the same line, Allan opined that if individual countries formulate their own regulatory standards, then the notion of common laws for the region goes out the window. Besides, due to this, companies would be forced to go through a hectic process of adjusting to the laws of different countries.