Meta has launched a legal challenge against Ofcom over its methodology for calculating fees and potential fines under the Online Safety Act. The company argues that penalties should be based on revenue generated within the UK rather than global revenue, as reported by The Guardian, BBC, and Reuters.
Key Takeaways
Meta has filed a legal challenge against UK regulator Ofcom over its methodology for calculating fees and fines under the Online Safety Act. The company argues that penalties should be based on revenue generated within the UK rather than global revenue.
- Meta seeks judicial review of Ofcom’s decision in High Court
- Fees and potential fines are calculated using a company's qualifying worldwide revenue (QWR)
- Under regulations, companies can face fines up to 10% of QWR or £18m, whichever is higher
- A full hearing on the case is expected in October
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▼Source Claims Check
High ConsensusAll 3 publishers report consistent facts across 4 key claims.
| Claim | Status | Reason | |
|---|---|---|---|
| Basis For Fees And Fines | Broad Agreement | Fees and fines based on global revenue | |
| Potential Fine Amount | Broad Agreement | Up to 10% of QWR or £18m, whichever is higher | |
| Meta's Argument For Fee Calculation | Broad Agreement | Fees should be based on UK revenue only | |
| Ofcom's Defense Of Its Approach | Broad Agreement | Based on a plain reading of the law |
Basis For Fees And Fines
Broad AgreementFees and fines based on global revenue
Potential Fine Amount
Broad AgreementUp to 10% of QWR or £18m, whichever is higher
Meta's Argument For Fee Calculation
Broad AgreementFees should be based on UK revenue only
Ofcom's Defense Of Its Approach
Broad AgreementBased on a plain reading of the law
This analysis is AI-generated and may not perfectly represent each source's reporting. Always read the original articles for full context.
According to Meta, Ofcom’s approach is disproportionate and could result in fines larger than any imposed by a UK regulator. The company claims that fees should be based on the services being regulated within specific countries, which would still allow for significant penalties as stated by The Guardian. Under regulations introduced in September 2023, companies can face fines of up to 10% of their qualifying worldwide revenue (QWR) or £18m, whichever is higher.
Ofcom has defended its approach, stating that it is based on a 'plain reading of the law'. The regulator said it would robustly defend its reasoning and decisions as reported by The Guardian. A preliminary hearing in London's High Court heard that Fortnite-maker Epic Games and the trade body Computer and Communications Industry Association (CCIA) may seek to intervene in the case, according to BBC.
A full hearing is expected in October. Ofcom’s lawyer Javan Herberg said the regulator intends to issue invoices for fees in the third quarter, most likely in September, and could have to pay refunds if Meta's challenge succeeds as per Reuters. The case raises issues of wide public importance and highlights the ongoing tensions between tech companies and regulators over digital safety standards.
How this summary was created
This summary synthesizes reporting from 3 independent publishers using AI. All sources are cited and linked below. NewsBalance is a news aggregator and media literacy tool, not a news publisher. AI-generated content may contain errors or inaccuracies — always verify important information with the original sources.