Meta challenges Ofcom in court for ‘acting irrationally’ in fine and fee pricing
Meta has challenged the UK regulator in court over how it calculates fees and fines under the UK’s online safety law, as it argued the methods are disproportionate and unlawful. The tech giant has questioned the media regulator, Ofcom, over its definition of ‘qualifying worldwide revenue’, which it uses to calculate financial penalties and fees [...]
Meta has challenged the UK's Ofcom regulator in court, claiming the regulator is acting irrationally and unlawfully in calculating fines and fees under the Online Safety Act. The dispute centers on Ofcom's definition of "qualifying worldwide revenue," which is used to determine the maximum penalty for tech companies that generate over £250 million in annual revenue.
Meta argues that this definition includes revenue from non-regulated services, creating a "double counting" approach that is disproportionate and unlawful. Ofcom maintains that it struck a careful balance in its approach and that the purpose of the QWR Regulations is to determine the maximum penalty, not the level of the fine. Both parties are set to present their arguments in a judicial review hearing at the English High Court on Tuesday and Wednesday.
Ofcom has framed its role as one of regulating an industry that was previously unregulated and has faced numerous legal challenges from tech companies.
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