Challenges in data transfer between regions may impact services: Meta

Countries are contemplating or enacting legislation that enforces data protection requirements, which can raise operational expenses.

Challenges in data transfer between regions may impact services: Meta

Thursday June 01, 2023,

2 min Read

Facebook-parent Meta said challenges in transferring data between regions could impact its ability to provide services, which may hit the firm’s financial results.

“If we are unable to transfer data between and among countries and regions in which we operate, or if we are restricted from sharing data among our products and services, it could affect our ability to provide our services, the manner in which we provide our services or our ability to target ads, which could adversely affect our financial results,” Meta stated in its annual report (FORM 10-K).

The Menlo Park-based company also noted that countries such as India and Turkey are currently contemplating or have already enacted legislation that enforces data protection requirements or necessitates local data storage and processing.

Meta added that implementing these measures can raise operational expenses and introduce complexities in delivering its services, potentially resulting in the cessation of its products and services in specific countries.

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The company has been entangled in multiple significant legal and regulatory issues in multiple jurisdictions, including in India. 

Meta is currently under investigation by the Competition Commission of India (CCI) for alleged anti-competitive practices and is also facing lawsuits related to its unified payments interface (UPI) service WhatsApp Pay.

Amidst the investigations and lawsuits, the company has reportedly laid off Amrita Mukherjee, Director, Legal, India operations, as part of a recent round of job cuts at the company. The workforce reduction is part of Meta’s downsizing plan announced in March, which would impact approximately 10,000 employees across the globe.

Meta commands a significant presence in India, with more than half a billion individuals using its services.

According to its annual report, the company’s worldwide daily active users (DAUs) increased by 4% to 2 billion on average during December 2022 from the year prior. Users in India, the Philippines, and Bangladesh represented the top three sources of growth in DAUs during the period.

In April, Meta returned to revenue growth in the first quarter of 2023 after three quarters.

Edited by Megha Reddy