As we’re all well aware of, GDPR goes into full swing next month. Facebook has decided to adapt and move the non-European users away from its protection.
In concrete terms, this means that more than 1.5 billion Facebook users from Asia, Latin America, Australia, and Africa will not be able to enjoy the benefits of the European GDPR.
Facebook has decided to make this move in order to reduce the company’s exposure to the new set of regulations which makes it possible to fine companies if they are found collecting or using the users’ data without their explicit consent.
The European law allows for fines of up to 4% of the company’s global revenue. Given the fact that a potential fine could cost Facebook millions of dollars, such a decision is understandable.
However, don’t make the mistake of thinking this does not concern you if you’re operating outside of the European territory. In case your organisation offers goods or services to the European consumers, you are bound by the GDPR and its requirements.
According to the latest data, Facebook has around 2 billion users. The 1,5 billion users the company is moving outside of GDPR protection consist of roughly 70% of its total user base.
Even though Facebook is a US company, in 2008, they created an Irish subsidiary in order to enjoy the country’s low corporate taxes. However, when the GDPR deadline comes around, the unit will be required to respect the new regulations.