ISLAMABAD: Meta and TikTok have contested the European Unionโs supervisory fee imposed under the Digital Services Act, calling it disproportionate and based on flawed methodology.
The fee requires major tech companies to pay 0.05% of their annual global net income to cover the EU Commissionโs monitoring costs.
Both companies argue that the fee calculation unfairly uses group revenue rather than subsidiary revenue, inflating their charges.
Dispute Over Fee Calculation Methodology
Meta’s legal team claimed the Digital Services Act’s provisions are opaque and have produced โimplausible and absurd results.โ
Meta emphasized it is not trying to avoid its fair share but questions the lack of transparency in how the fee is assessed.
TikTok, owned by ByteDance, similarly criticized the fee as unfair and discriminatory, pointing out that the counting of users across devices leads to double charges.
TikTokโs lawyer argued the EU regulators exceeded their authority by applying the fee cap at the group profit level, affecting the feeโs fairness.
EU Commission Defends the Fee Structure
The European Commission rejected these claims, maintaining that using group profits is justified since consolidated accounts represent the full financial capacity of the companies.
Commission lawyer Lorna Armati stressed that the companies had enough information to understand the feeโs basis and denied any breach of their rights or unequal treatment.
The General Court in Luxembourg, Europeโs second-highest judicial body, is expected to issue its verdict next year, which will set an important precedent for digital regulation fees.
This legal battle reflects the ongoing tensions between global tech giants and regulators aiming to enforce digital laws and collect compliance fees.
