Meta and TikTok sue over EU content policing fee payment.

Meta and ByteDance Challenge EU Supervisory Fee

Meta and TikTok owner ByteDance are opposed to paying the European Union for regulatory oversight. The companies are contesting a supervisory fee imposed by EU regulators, who now have the responsibility of monitoring Meta, TikTok, and other major platforms under the Digital Services Act (DSA), according to Politico. Meta initiated the challenge against the fee, with ByteDance following suit a day later.

Disagreement Over Fee Structure

Under the current arrangement, all designated companies must contribute to the €45.2 million ($48.7 million) required by EU regulators for supervising the 20 Very Large Online Platforms and two Very Large Online Search Engines (VLOSEs). Each regulated platform with 45 million or more users is required to financially contribute based on the size of their user base. However, companies like Amazon and Pinterest, with minimal profits, are exempt from payment. Meta was billed €11 million ($11.9 million) under the current fee structure, while the amount owed by ByteDance remains undisclosed.

Concerns Over Regulatory Methodology

Meta has expressed concerns regarding the methodology used by EU regulators to determine each company’s fees. A spokesperson for Meta highlighted that companies operating at a loss are exempt from payment, regardless of their user base or regulatory impact. This results in some companies paying nothing, while others bear a disproportionate share of the total fee. Non-compliance with the fee could lead to a fine of up to six percent of a company’s global revenue.

The implementation of the DSA in 2023 introduced the VLOP designations for Meta, ByteDance, Google, and X (formerly Twitter). In addition to the supervisory fee, VLOPs must comply with specific regulations concerning advertising transparency, content moderation, data sharing with the European Commission, and participation in an annual independent audit.