Key facts
- Meta is challenging Ofcom's fee and fine calculation methods under the UK's Online Safety Act.
- Meta argues the methods are disproportionate and place an undue burden on large tech firms.
- Ofcom's fees are based on qualifying worldwide revenue for companies earning over £250 million annually.
- Companies breaching the Online Safety Act can face fines up to 10% of qualifying worldwide revenue or £18 million.
- Meta believes penalties should be based on revenues from services regulated within their operating countries.
Meta Platforms, the parent company of Facebook and Instagram, has initiated a legal challenge against the UK's media regulator, Ofcom, in the High Court. The dispute centers on the methodology Ofcom employs to calculate fees and potential fines levied under the Online Safety Act, which became effective in July 2025.
Under regulations implemented in September, tech firms with annual qualifying worldwide revenues exceeding £250 million are subject to these fees, which fund Ofcom's online safety work. Meta contends that Ofcom's approach is "disproportionate" and "unlawful," arguing that it places a significant financial burden on a small number of companies like Meta, despite the act's intention to cover a broad spectrum of internet services operating in the UK. Monica Carss-Frisk KC, representing Meta, stated in court documents that the calculation of qualifying worldwide revenue is not specifically tied to earnings derived from UK services.
Furthermore, Meta is contesting how penalties are determined when multiple entities under the same parent organization are found jointly liable for breaches. The company advocates for penalties to be based on revenues generated by the specific services regulated within the countries where they operate, suggesting this would still permit substantial fines.
During a preliminary hearing, the High Court was informed that Fortnite developer Epic Games and the trade body the Computer and Communications Industry Association intend to seek permission to join the proceedings. Mr. Justice Chamberlain recognized the "wide public importance" of the issues raised and scheduled the next hearing for June, with a full hearing anticipated in October.
An Ofcom spokesperson asserted that the regulator's approach is based on a "plain reading of the law" and expressed disappointment with Meta's objection to paying fees and potential penalties calculated on this basis. A Meta spokesperson reiterated the company's commitment to constructive cooperation with Ofcom but maintained that penalties should reflect revenues from services regulated in their operating countries.