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Meta Sues UK Ofcom Over Global-Revenue Basis for Online Safety Fees and Penalties

The case could test whether UK regulators may tie fees and fines to a company’s global revenue.

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, which filed the High Court challenge on Thursday, is contesting Ofcom’s use of “qualifying worldwide revenue” (global takings) to set annual fees and potential fines under the Online Safety Act.
  • Meta also disputes Ofcom’s joint-liability rule that can aggregate revenue across sister services, arguing fines should not be based on the whole group’s global income when only one app is at issue.
  • Ofcom says the law supports using qualifying worldwide revenue and it will defend the policy, calling Meta’s objection to paying fees and potential penalties disappointing.
  • The hearing is set for October 2026, and Ofcom plans to issue invoices in the third quarter, most likely September, with refunds possible if Meta wins.
  • The 2023 law lets Ofcom fine up to 10% of a company’s qualifying global revenue and requires it to recover enforcement costs through provider fees, a model trade group CCIA backs Meta in challenging and Epic Games may seek to join.