Mark Zuckerberg’s fortune has plummeted in the last 24 hours, following reports that his business, Meta, may shut down Facebook and Instagram services in Europe.
Meta, formerly known as Facebook, has been experiencing data transfer issues in Europe as a result of the continent’s data protection rules, which the internet giant claims is obstructing its operations.
The corporation has a history of sending users’ data across continents to the United States, but the Irish Data Protection Commission claims that this is in violation of the EU’s General Data Protection Regulation.
After the Irish Data Protection Commission blocked Meta’s data transfer in 2020, the company told the US Securities and Exchange Commission that the restriction could change the way its social media firms operate, and that Meta might stop providing services in Europe as a result of the data blockage.
“If a new transatlantic data transfer framework is not adopted and we are unable to continue to rely on SCCs or rely upon other alternative means of data transfers from Europe to the United States, we will likely be unable to offer a number of our most significant products and services, including Facebook and Instagram, in Europe, which would materially and adversely affect our business, financial condition, and results of operations.” Meta stated.
Following the reveal by multiple western media outlets earlier on Tuesday, Meta stock had dropped 5.14 percent as of the time of posting this story during trading hours, bringing its share value down to $224.91 from $237.71 on Monday.
This reflects a drop in investor trust in Meta due to a slew of regulatory and operational difficulties, including the Metaverse business segment’s losses last year.
Shareholders increased their selling in the aftermath of the possibility that Facebook and Instagram will shut down in Europe – despite such threats are typically made by major internet businesses to push regulatory bodies to drop requests that are unfavorable to their business.
Nonetheless, the sell-off harmed Zuckerberg’s net worth, as he lost N1.74 trillion ($4.2 billion) due to the panic exodus, bringing his total value to $80.3 billion.