Meta Platforms: India’s Restrictions on Data Processing and Storage Worry: Meta Platforms Tells SEC

Chenai: Meta Platforms, Facebook’s parent company, has expressed concern over India’s upcoming privacy legislation that targets local storage and processing of data, the company’s filing with the Securities and Exchange revealed. Commission (SEC).

“Some countries, such as India, are considering or have passed legislation implementing data protection requirements or requiring local storage and processing of data or similar requirements that could increase the cost and complexity of delivery of our services,” the company said.

It added that new laws or regulatory rulings restricting its ability to collect and use information about minors may also result in limitations on its advertising services or its ability to offer products and services to minors in certain jurisdictions.

Parliament’s joint committee to study the Personal Data Protection Bill 2019 delivered its report in December. The report and the bill submitted by the committee recommended that sensitive personal data should continue to be stored in India under Section 33 of the bill and that its transfer outside India should only be permitted under certain conditions under section 34.

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Deciphering the Data Protection Bill

The EU’s General Data Protection Regulation (GDPR) imposes similar conditions on data transfer only to countries that meet “data adequacy” standards, Indian officials have argued.

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They also said that storing sensitive personal data in India would support the growth of large-scale data centers and an innovative data-driven economy.

Meta also said he was handling investigations and prosecutions in Europe, India and other jurisdictions. He specifically mentioned the ongoing lawsuit in the Supreme Court of India and the government’s investigations and lawsuits regarding the 2021 update to WhatsApp’s Terms of Service and Privacy Policy. Whatsapp has also challenged the Indian government’s interim rules that mandate message traceability and would force the Meta-owned instant messaging app to break its end-to-end encryption.

“If we are unable to transfer data between and among the countries and regions in which we operate, or if we are restricted from sharing data between 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 advertisements, which could adversely affect our bottom line,” Meta said.

Furthermore, the company said that the problem is not limited to India and added that it may even have to remove its flagship platforms Facebook and Instagram from the EU region due to European regulations on the data confidentiality.

“If a new transatlantic data transfer framework is not adopted and we are unable to continue to rely on SCCs or other alternative means of transferring data from Europe to the United States , we are unlikely to be able to offer a number of our most important products and services, including Facebook and Instagram, in Europe, which would have a material and adverse effect on our business, financial condition and results. ‘exploitation’, says the folder.

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