Meta has launched a legal challenge against Ofcom over fees and fines under the Online Safety Act, arguing that the regulator's methodology for calculating charges is flawed. The social media giant is seeking a judicial review in the High Court. Under the Online Safety Act, breaches can be punished by fines of up to 10% of qualifying worldwide revenue (QWR) or £18m, whichever is higher.
Ofcom's fees are based on a proportion of an organisation's QWR and apply to businesses with more than £250m of such revenue a year. The fee regime began this year and applies to online service providers with turnover from certain services of roughly £250m or above. Meta reported revenues of $201bn last year, meaning potential fines could be substantial.
We will robustly defend our reasoning and decisions.
The company argues that Ofcom's methodology for calculating charges is disproportionate and should be based on revenue in the country of regulation, not global revenue. Ofcom said its fees and fines regime was based on what it called a plain reading of the law and will defend its reasoning. A hearing related to Meta's case is scheduled for 13-14 October.
The US online forum 4chan has refused to pay fines related to the act, and Ofcom has been sued by the companies behind the 4chan and Kiwi Farms websites.