"The Facebook and Instagram owner has launched a legal challenge against the UK comms regulator, arguing that the way Ofcom calculates fees and potential penalties under the Online Safety Act is fundamentally wrong because it relies on global turnover rather than UK-specific revenue."
"The law allows Ofcom to fine companies for up to 10 percent of their qualifying worldwide revenue, or £18 million, whichever is higher. For Meta, which brought in about $201 billion last year, that means the numbers stop sounding like regulatory penalties and start sounding like national infrastructure projects."
"Meta is now seeking a judicial review in the High Court over how Ofcom defines "qualifying worldwide revenue." The dispute boils down to three complaints. First, Meta argues that Ofcom should only consider UK revenue tied to regulated services, not the company's global income. Second, it objects to rules that treat multiple services under the same corporate umbrella as jointly liable, potentially exposing the wider organization to larger penalties. Third, it is challenging how Ofcom aggregates revenue across services rather than assessing them individually."
"An Ofcom spokesperson told The Register: "Meta have initiated a judicial review in relation to online safety fees and penalties. Under the Online Safety Act, these are to be set with reference to a provider's 'Qualifying Worldwide Revenue', which we have defined based on a plain reading of the law." "Disappointingly, Meta are objecting to the payment of fees, and any penalties that could be levied on companies in future, that are calculated on this basis. We will robustly defend our reasoning and decisions.""
Meta has launched a legal challenge against Ofcom over how fees and potential penalties are calculated under the Online Safety Act. The dispute centers on Ofcom’s use of “qualifying worldwide revenue,” which the law allows to be used for fines up to 10% of qualifying worldwide revenue or £18 million, whichever is higher. Meta argues that Ofcom should consider only UK revenue tied to regulated services rather than global income. Meta also objects to rules that treat multiple services under the same corporate umbrella as jointly liable, which could increase exposure to penalties. Meta further challenges how Ofcom aggregates revenue across services instead of assessing them individually.
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