Meta, the company that owns Facebook and Instagram, is taking legal action against Britain’s media regulator, Ofcom. The dispute is about how fees and penalties are calculated under the government’s new Online Safety Act, as heard in London’s High Court on Thursday.
An Ofcom spokesperson stated that the fees and penalties under this law are based on a company’s total worldwide revenue that qualifies. Ofcom expressed disappointment, saying, “Meta are objecting to the payment of fees, and any penalties that could be placed on companies in the future, that are calculated on this basis.”
A Meta spokesperson, in turn, said that “we and others in the tech industry believe (Ofcom’s) decisions on how to calculate fees and potential fines are too extreme.” They added, “We believe fees and penalties should be based on the services being regulated in the countries where they are being regulated.” Meta also argued, “This would still allow Ofcom to impose the largest fines in UK corporate history.”
Britain’s 2023 Online Safety Act sets stricter rules for social media platforms like Facebook. It allows Ofcom to fine companies up to 10% of their qualifying global revenue. The law also requires Ofcom to get back the costs of running this new system by charging fees to service providers.
Ofcom’s lawyer, Javan Herberg, told the High Court that Ofcom “plans to send out invoices (for fees) in the third quarter of this year, most likely September.” He also noted that Ofcom might have to pay refunds if Meta wins its challenge.
