Meta Challenges Ofcom Fee Method in UK Court

Meta Platforms has filed a judicial review in the UK High Court challenging the media regulator Ofcom's methodology for calculating regulatory fees and potential fines under the Online Safety Act.

The dispute, which came before the court at a preliminary hearing this week, centers on Ofcom's use of a company's qualifying worldwide revenue, rather than UK-specific earnings, to determine charges. The 2023 legislation imposes stricter standards on social media platforms, search engines, and providers of user-generated or pornographic content to protect users from harmful material. Ofcom enforces the act and recovers its costs through fees levied on firms with more than 250 million pounds in qualifying worldwide revenue from regulated services. Breaches can result in fines of up to 10 percent of that revenue or 18 million pounds, whichever is higher.

Meta, which owns Facebook and Instagram, argues the approach is disproportionate and unlawful. The company contends fees and penalties should reflect revenue from services regulated in the UK, particularly when multiple platforms under the same parent organization face joint liability. "We believe fees and penalties should be based on...