Meta sues Ofcom over fines regime for breaches of Online Safety Act

Meta has launched a legal challenge against the UK’s media regulator over the fees and fines regime it is enforcing under landmark digital safety legislation. The Facebook and Instagram owner is claiming that Ofcom’s methodology for calculating the charges is flawed and should not be based on a company’s global revenue. Breaches of the Online Safety Act can be punished by fines of up to 10% of qualifying worldwide revenue (QWR) or £18m – depending which is higher. In the case of Meta, which reported revenues of $201bn last year, Ofcom could in theory impose a fine of $20bn for breaches. Under regulations introduced in September, Ofcom’s fees will also be based on a proportion of an organisation’s QWR and apply to businesses that made more than £250m of this revenue a year. Meta argues that fees and potential fines should be based on the country where the company is being regulated and is seeking a judicial review of Ofcom’s decision in the high court. “We and others in the tech industry believe its decisions on the methodology to calculate fees and potential fines are disproportionate,” said a Meta spokesperson. “We believe fees and penalties should be based on the services being regulated in the countries they’re being regulated in. …