Meta, the parent company of Facebook and Instagram, is challenging the UK's media regulator, Ofcom, over the methodology used to calculate fees and potential fines under the Online Safety Act. Meta argues that Ofcom's approach, which relies on worldwide revenue to determine these figures, is disproportionate and exceeds the regulator's statutory powers.
The Online Safety Act of 2023 empowers Ofcom to levy fines of up to 10% of a company's qualifying worldwide revenue or £18 million ($23.9 million), whichever is greater. The regulator also recovers its operational costs through fees calculated based on revenue.
Meta's legal challenge, heard in London's High Court, contends that Ofcom has broadly interpreted "qualifying worldwide revenue" with the primary goal of imposing the maximum possible penalties. Meta's legal submission states that this is Ofcom's "overriding concern."
Furthermore, Meta is contesting Ofcom's method for calculating fines when multiple entities within the same organization are found jointly liable for violations.
