"We and others in the tech industry believe its decisions on the methodology to calculate fees and potential fines are disproportionate. We believe fees and penalties should be based on the services being regulated in the countries they're being regulated in. This would still allow Ofcom to impose the largest fines in UK corporate history."
"Ofcom's approach was troubling and would lead to companies such as Meta bearing the vast majority of Ofcom's costs, despite the act making clear that it is concerned with a wide range of internet services offered in the UK. If a service is provided to UK users, then all of its revenue globally will count towards QWR."
Meta is pursuing a legal challenge against Ofcom's fees and fines regime under the Online Safety Act, contending that the regulator's methodology is flawed. The dispute centers on whether penalties should be calculated based on a company's global revenue or revenue generated specifically in the UK. Under current regulations, Ofcom can impose fines up to 10% of qualifying worldwide revenue or £18 million, whichever is higher. For Meta, this could theoretically result in fines reaching $20 billion. Meta argues that fees and penalties should reflect only services regulated in specific countries, claiming Ofcom's approach is disproportionate and would place excessive financial burden on large tech companies. A judicial review hearing is scheduled for October 13-14.
#meta-legal-challenge #ofcom-regulation #online-safety-act #digital-fines-methodology #uk-tech-regulation
Read at www.theguardian.com
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