Meta filed a report where it claims it may have to withdraw its core services – Facebook and Instagram – from Europe. WHAT A JOKE! No one at Facebook actually believes any of this! Facebook needs Europe far more than Europe needs Facebook and, in this video, I explain why.
“Are you threatening us with a good time?” – that should be the response of every European and especially every European politician to Facebook’s amusing threats to leave.
Because, yet again, Meta has been making noises about how they might have to pull out of the EU and not offer their core services like Facebook and Instagram. What a joke. Meta is not going to do it, but I slightly worry that some European representatives may not be technologically savvy enough to realize that this is an empty threat.
The core reason why this threat is completely empty is simple: Facebook and Instagram are easily replaceable. If Facebook left Europe, we’d see a brief period of confusion, followed by a brief game of thrones to see which social network would get to be the new top dog in Europe. A month later, everyone would be on “Eurobook” and that would be that.
But it gets worse for Facebook. A couple days ago, a report showing that Facebook is not growing anymore triggered a colossal loss in market cap of around 25%. What would the response of the stock market be, if Facebook decided to leave a market of half a billion people, located in some of the wealthiest economies of the world?
But it gets even worse than that for Meta! There’s a fair chance the emerging Eurobook would be, itself, European. In that case, Eurobook would likely cash in on investor and advertising money. All that moolah now goes into local economies of Europe, instead of FB, improving our own Big Tech capacity and providing us with a bunch of high paying jobs.
Why should the EU be afraid of that, exactly?
But wait, there’s more! This is, after all, not a two-way street. There’s no rule that says that Eurobook can’t provide services to the Americas and the rest of the world. By abandoning the European market, Facebook would be creating a huge, direct competitor for themselves – one that might very well grow to become an existential threat to the company.
You think I’m finished here? No, it gets worse. Facebook’s main global problem is that it’s not cool anymore. It has trouble attracting young users, who rightfully see the platform as the space of boomers and old people. By contrast, a new Eurobook, created in the fires of rebellion against boring old Facebook might just have that fresh, rebellious coat of paint that would attract teenagers and young adults onto the platform.
Last, but not least, Eurobook would likely have a fairly major competitive advantage. Meta’s reputation is so bad at this point that they need to pay their engineers a big chunk of extra cash to get them to work for the company. Eurobook would be unlikely to have such a reputation, meaning that they would have a far easier time attracting and retaining talent.
In short: Facebook leaving Europe would likely result in the immediate creation of a replacement, which might very well grow to be an existential threat to Facebook on a global scale.
By all means, Meta. Leave. But you won’t, will you? Like and subscribe if you realize now that everyone in Meta’s leadership knows that this threat is bs through and through and this is just a little game they’re playing, hoping to extract some concessions.
Hey, I’m not truly ruling anything out.
It could be that Zuckerberg is THAT arrogant, maybe he believes he’s invincible and he doesn’t realize that he’s in a precarious position, where the only thing his social network has going for it is that everyone else is already on it – but that advantage vanishes as soon as Facebook decides to pull out of a market.
Maybe I’m overestimating Zuck; CEOs have certainly shot themselves in the foot before – and if it happened before, it can happen again.
Newspaper headlines and other materials used under the doctrine of FAIR USE, for purposes of news & commentary, including sources: Insider, Wall Street Journal, NY Times, Associated Press, Verge, Fossbytes
Andrea Piacquadio https://www.pexels.com/@olly
Magda Ehlers https://www.pexels.com/@magda-ehlers-pexels
Tima Miroshnichenko https://www.pexels.com/@tima-miroshnichenko