Meta Challenges Ofcom Fees in High Court
Meta, the parent company of Facebook and Instagram, is challenging the UK media regulator Ofcom in the High Court over fees and potential fines introduced under the Online Safety Act. The focus keyphrase High Court is central to this legal dispute, which concerns the calculation of fees and penalties imposed on tech companies for online safety regulation.
Background of the Online Safety Act and Ofcom’s Role
The Online Safety Act, which came into force in July 2025, aims to protect users from harmful online content. Ofcom is responsible for enforcing the act and its operating costs for this work are funded by fees charged to tech firms. Under regulations introduced in September, these fees are based on a company’s qualifying worldwide revenue and apply to firms earning more than £250 million annually.
Meta disputes Ofcom’s method of calculating these fees and penalties, describing them as “disproportionate.” The company argues that the approach unfairly places the majority of Ofcom’s costs on a small number of large companies like Meta, despite the act targeting a wide range of internet services in the UK.
Legal Arguments and Court Proceedings
Meta’s lawyers contend that the regulations are unlawful and should be reconsidered by Ofcom. Monica Carss-Frisk KC, representing Meta, stated in court documents that the calculation of qualifying worldwide revenue is not specifically linked to earnings from UK services, which is a key point of contention.
Additionally, Meta challenges how penalties are calculated when multiple companies owned by the same parent organisation are found jointly liable for breaches of the Online Safety Act. Under the act, companies can face fines of up to 10% of qualifying worldwide revenue or £18 million, whichever is greater.
At a preliminary hearing in London, the High Court heard that other parties, including Fortnite-maker Epic Games and the trade body Computer and Communications Industry Association, are expected to seek permission to intervene in the case. Mr Justice Chamberlain noted that the dispute raises issues “of wide public importance” and confirmed that the next hearing will take place in June.
Responses from Ofcom and Meta
An Ofcom spokesperson said the regulator’s approach is based on “a plain reading of the law” and that it will “robustly defend” its position. The spokesperson expressed disappointment at Meta’s objections to the payment of fees and potential penalties calculated on this basis.
A Meta spokesperson said the company remains “committed to co-operating constructively with Ofcom as it enforces the Online Safety Act.” However, Meta insists that penalties should be based on revenues generated by the regulated services specifically in the countries where they operate. The spokesperson added that this approach would still allow Ofcom to impose the largest fines in UK corporate history.