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A new EU law requires companies that gather user data within the union to keep and process that data on European servers. Facebook's and Instagram's data, however, is processed on both US and European servers, which is crucial for ad targeting and businesses that operate on those social platforms.

In the report submitted to Securities and Exchange Commission, Meta suggests that if the company fails to comply with the new EU regulations, it will simply stop providing its Facebook and Instagram services within the union. Meta's VP of Global Affairs, Nick Clegg, argues that this would be detrimental to a lot of businesses
Last week's financial report sent Meta's stock plummeting by 25% after the company lost daily active users for the first time in its history. This means the company is likely just trying to put itself in a more beneficial negotiation position instead of actually planning on actually acting up on its threats.
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