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Facebook denies it will pull service in Europe over data transfer ban

Facebook’s head of global program has affirmed the tech whale could close its service to Europeans if neighbourhood regulators require it to suspend data transfers to the US following a landmark Court of Justice ruling in July that has cemented the separation between US surveillance laws and EU privacy rights.

Press reports rose the coming week of a Dublin court filing by Facebook, which is seeking a keep to a preliminary dangling prescribe on its EU-US data transfers, that indicate the tech giant could pull out of the region if regulators enforce a ban against the utilization of the a data transfer mechanism known as Standard Contractual Clauses.

The court filing is attached to Facebook’s have applied for a judicial asses of a preliminary exclusion ordering from Ireland’s Data Protection Commission earlier this month, as Facebook’s lead-in EU data foreman responded to the implications of the CJEU ruling.

” We of course won’t[ shut down in Europe] — and the reason we won’t of course is precisely because we want to continue to serve patron and small & medium industries in Europe ,” said Facebook VP Nick Clegg during a livestreamed EU policy debate yesterday.

However he likewise warned of ” profound impact” on composes of digital customs if a channel is not found by lawmakers on the two sides of the pond to resolve the legal uncertainty around US data transfers — making a pitch to legislators to be presented by a brand-new law’ sticking plaster’ for EU-US data transfers now that a flagship arranging, announced Privacy Shield, is dead.

” We have a important issue — which is that for numerous composite, law, political and other reasons question mark are being raised about the current law basis under which data transfers exist. If those law means of data transfer are removed — not by us, but by regulators — then of course that will have a profound effect on how , not just our services, but countless other companionships operate. We’re trying to avoid that .”

The Facebook VP was speaking during an EBS panel debate on rebooting “the regions economy”” towards a green, digital and resilient confederation” — which included the EU’s commissioner for the economy, Paolo Gentiloni, and others.

Discussing the Dublin legal filing, Clegg suggested that an overenthusiastic reporter” somewhat overwrote” in their reading of the document.” We’ve go action at law in the Dublin courts to — in a certain sense — to try to send a signal that this is a really big issue for the whole European economy, for all small-minded and enormous companies that rely on data movement ,” he said.

Clegg went on to claim that while Facebook being forced to suspend data transfers from the EU to the US” would of course be very bad for Facebook” the impact of such an say” would be absolutely terrible for the economy as a whole “.

” What is at stake here is quite a big problem that in the end can only be resolved politically between a continued negotiation between the US and the EU that clearly is not going to happen until there’s a new US administration in place after the transitional period in the early part of next year ,” he said, expressing Facebook is using Ireland’s courts to try to buy time for a political fix.

” We need the time and the opening for the political process between the EU and the US to work out so that companies can have confidence becoming fwd that they’re able to transfer data move forward ,” he added.

Clegg too sought to present Facebook’s platform as an essential component of any regional economy recovery — talking up its utility to European SMEs for reaching customers.

Some 25 M European corporations use its apps and implements, he said — impressing that the “vast majority” do so free of charge and further claiming activity on Facebook’s ad scaffold could be linked to sale of 208 BN, and 3M+ tasks, per independent estimates.

” In terms of the economic recovery, our most important role is to continue to provide that astonishing capacity for small businesses to do something which in the past merely big businesses could do ,” he said.” In the past exclusively big businesses had the imagination commerce budgets and could take out invoice boards and television and radio ads. The transformational the consequences of social media and Facebook in part economically speaking is that it’s levelled the playing field .”

Clegg get further on this top — attaching the mass exploitation of Internet useds’ personal data to the economic value generated by regional enterprises via what he badged” personalized advertising” — aka” Facebook’s business pattern “.

” The personalized marketing sit allowed to be do that — allows us to level the playing field ,” he claimed.

The tech giant’s processing of Europeans’ personal data remains under investigation on multiple figureheads by EU regulators — meaning that as well as the clear threat to its US deliveries Facebook’s core business model would be in danger of being unpicked by regulators if it faces enforcement measures over numerou claimed data protection irreverences in future.

” I’m terribly aware that it is a business model that has batch of disapproval aimed at it and there’s a absolutely legitimate debate which frenzies in Brussels and elsewhere about how Facebook assembles, accumulates and monetizes data — and that is a entirely legitimate and ongoing debate — but I hope parties will not overlook that that business model has one resourceful benefit, amongst others, which is that it allows small businesses to operate on the same basis as big businesses in reaching their purchasers ,” he said.

Never one to waste a lobbying possibility, Clegg reasoned the pandemic has made this capacity ” even more important” with EU people under lockdown and fewer opportunities for businesses to engage in be faced selling.

Max Schrems on the EU court ruling that could cut Facebook in two

Taxing period

The knotty issue of digital tax reform also came up during the debate.

Gentiloni repetition the Commission position that it wants to see world agreement on reforming tax governs to take account of the switching to online business but he said the bloc is willing to go ahead with a European digital tax if that try neglects.

” We can’t be staying with the simulation of the previous century ,” he said, before going on to flesh out the challenges facing world accord on this matter.” We don’t want to be the one transgressing this OECD process. To be honest, there was a lot of progress in this thing that we call’ inclusive framework’ — more than dozens of countries taken together and contacting something like an agreement on a new structure of digital levy but then one single country — but an important one — is not agreeing with this solution, is proposing a different one. But this different solution, the so announced’ Safe Harbor ‘, appears a little like an optional solution and it’s a bit difficult to conceive of an optional solution because of course you don’t salary’ optional taxes ‘, I don’t think so. But we are still committed towards the end of this year to try to find this solution.

” My absolute preferred solution would be a world-wide one. For countless grounds — for avoiding hostilities among two countries, and for the purpose of facilitating for business the payment of taxes — but I want to say very clearly that we have a second best solution which is a European digital taxation because the alternative to this would be to have, as we already have in legislation, a French one, an Italian one, a Spanish one and I don’t think this is a good mixture for Facebook or other companionships. So we’re working for world but if world-wide is not possible we will go European .”

Facebook’s Clegg said the company” will pay the taxes that are due under the rules that operate”, adding that if there is a European digital tax it will “of course” complied with. But he extremely said Facebook’s liking is for a world-wide arrangement.

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