With an intent to protect the user’s data and privacy, the European jurisdiction introduced a new law. The law makes it necessary for the companies who collect user data to keep and process it on European servers. So, Metaverse is should also comply with the laws.
However, Meta already processes the data on European and U.S. servers, so what makes a difference?
As per the laws, Meta and other companies who follow the practice cannot store and process the data to other countries’ servers.
Moreover, if Meta continues to follow the practice, it will lose a huge share of its profits. As per the statement from Meta officials, if they fail to export the data, they are more likely to stop serving Facebook and Instagram in Europe.
If the data transfer within regions stops, Meta will not work as per their Algorithms. It’s because collection and processing of data are necessary to know the user’s interest, the way they work, and the way they target ads for users and entrepreneurs.
Many firms ranging from small-scale to large scale rely on Facebook and Instagram marketing to get potential audiences.
Will it affect Metaverse’s net worth?
Many users have already stopped using the Meta apps after the regulations.
Last week’s financial reports have reflected the effect. The results will give you goosebumps if you don’t know.
Last week Meta incurred the largest single-day loss of $240 billion. The amount is quite more than India’s company with the largest annual turnover, “Reliance.” A renowned Indian billionaire Mukesh Ambani owns an annual turnover of $210 billion. Moreover, it happened that Meta’s shares have dropped by 26%.
A huge single-day loss made him $29 billion poorer. Besides, the company’s net worth has been reduced to $85 billion. If you check out the Forbes list of real-time billionaires, Mark Zuckerberg has already slipped to 12th position. Well, that’s pretty lower than his initial position.
Imagining a place with no Instagram and Facebook users sounds absurd. For some, it may seem conventional, but let’s wait to see what happens. If Meta manages the situation or not, whatever happens, let’s not forget VPNs!