technology
Meta Challenges Ofcom Fees in High Court
Meta has filed a High Court challenge against Ofcom over the calculation of fees and potential penalties under the Online Safety Act. The company argues the methods are disproportionate and not linked to UK-specific revenues. Ofcom said it would defend its position based on a plain reading of the law.
May 7, 12:30 PM·2m read1 source
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Meta, the parent company of Facebook and Instagram, is challenging the UK media regulator Ofcom in the High Court over fees introduced under the Online Safety Act. The law came into force in July 2025 and introduced protections against harmful online content.
Ofcom's operating costs for its online safety work are funded by tech firms. Regulations introduced in September base the fees on a company's qualifying worldwide revenue for firms earning more than £250m a year. Meta said Ofcom's methods for calculating fees and penalties were disproportionate.
The company is challenging rules covering search engines and platforms where users can share content, including social media sites. Lawyers for the company argue the regulations are unlawful and should be reconsidered. Court documents state that Ofcom's approach leads to a handful of companies bearing the vast majority of costs, despite the act covering a wide range of internet services offered in the UK.
The documents also argue that the calculation of qualifying worldwide revenue was not linked specifically to earnings from UK services. Under the Online Safety Act, companies found to have breached safety rules can face fines of up to 10% of qualifying worldwide revenue or £18m, whichever is greater.
Meta is also disputing how penalties are calculated when multiple companies owned by the same parent organisation are found jointly liable for breaches.
At a preliminary hearing in London on Thursday, the High Court heard that Fortnite-maker Epic Games and the Computer and Communications Industry Association are expected to seek permission to intervene in the case. Mr Justice Chamberlain said the dispute raised issues of wide public importance and confirmed the next hearing would take place in June.
