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Meta Challenges UK Ofcom Over How Online Safety Fees and Fines Are Calculated

The case could determine if Ofcom may use worldwide revenue to set charges.

People walk behind a logo of Meta Platforms company, during a conference in Mumbai, India, September 20, 2023. REUTERS/Francis Mascarenhas/File Photo

Overview

  • Meta filed a High Court challenge in London on Thursday, contesting Ofcom’s plan to base bills and penalties on a company’s worldwide revenue.
  • Meta argues fees should reflect services regulated in the UK only and says Ofcom’s method is disproportionate.
  • Ofcom says the law ties both fees and penalties to a provider’s qualifying worldwide revenue and criticized Meta’s objection.
  • Ofcom plans to send invoices in the third quarter, most likely September, and may issue refunds if Meta wins the case.
  • The Online Safety Act lets Ofcom fine firms up to 10% of qualifying global revenue and requires it to recoup regime costs from providers, which could mean large liabilities for big platforms.