Meta launches legal challenge over Online Safety Act fees and fines

Meta has launched a legal challenge at the High Court in London against Ofcom, the UK's communications regulator, concerning the fee and penalty structure of the Online Safety Act 2023 (OSA). Under regulations introduced in September, Ofcom's operating costs are funded by tech companies with qualifying worldwide revenues exceeding £250 million. Meta argues that calculating these fees and potential fines based on upto 10% of global rather than UK-specific revenue is disproportionate and unlawful.

Legal representatives for Meta argued that the methodology results in a few large companies bearing the majority of regulatory costs, despite the Act's broader scope. Meta is also challenging how penalties are applied when multiple subsidiaries are found jointly liable.

Ofcom has committed to defending its position, maintaining that its approach is based on "a plain reading of the law". 

Both Epic Games and the Computer and Communications Industry Association are expected to seek permission to intervene in the case, given its public importance. 

A full hearing is scheduled for October, following a further session in June.

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