Meta challenges UK online safety watchdog: Here’s why

Meta reportedly challenged Britain’s media regulator today over how it calculates fees and monetary sanctions under the Online Safety Act arguing that the watchdog’s calculations lack proportionality.

According to the 2023 law, Ofcom allows it to impose fines of up to 10% of global turnover which is greater to recover the costs of revenue-based regulatory funding.

This challenge comes a week after Ofcom launched an inquiry into the company’s risk management adequacy regarding its Instagram Instants feature before launching it in May. The case brought by Meta opened in London’s High Court on Tuesday and challenges Ofcom’s use of global rather than UK revenue to determine fees and maximum fines.

In response, Meta argued that Ofcom acted ultra vires by defining qualifying worldwide revenue as broadly as possible with the motive of imposing the highest possible penalties. The company is also fighting Ofcom, joining TikToK and X in a separate post hearing last week over the volume of information the regulator is demanding.

A statement from Meta spokesperson reads: “However, we and others in the tech industry believe its decisions on the methodology to calculate fees and potential fines are disproportionate.”

“We believe fees and penalties should be based ​on the services ⁠being regulated in the countries they're being regulated in. This would still allow Ofcom to impose the largest fines in UK corporate history.”

Furthermore, Ofcom said it has been tasked with regulating an industry that had previously been left completely unchecked for more than 20 years.