Meta Challenges EU’s Digital Services Act Supervisory Fee As Unfair


Meta, the parent company of Facebook and Instagram, is taking legal action against the European Union over the supervisory fee imposed on larger online platforms under the Digital Services Act (DSA). This move marks the first legal challenge specifically targeting the supervisory fee, as reported by Politico.

Key Takeaway

Meta is challenging the EU’s Digital Services Act supervisory fee, arguing that the current methodology is unfair as it exempts companies reporting a loss from payment, leading to an unequal distribution of the fee burden among platforms.

EU’s Digital Services Act and Supervisory Fee

The DSA, which is set to come into full force later this month, requires very large online platforms (VLOPs) and very large online search engines (VLOSE) to contribute to the costs of the EU’s oversight of their operations. The fee is determined based on the platform’s average active monthly regional users and economic capacity.

Meta’s Disagreement with the Fee Calculation

Meta has voiced its disagreement with the methodology used to calculate the fees, arguing that companies reporting a loss are exempt from payment, regardless of their user base or regulatory burden. The company contends that this results in some platforms paying nothing, while others bear a disproportionate share of the total fee.

EU’s Response and Defense

The European Commission defended its fee calculation methodology, emphasizing that it aims to reflect the economic capacity of the provider and is not intended as a penalty. The Commission stated that the fee is designed for regulated entities to contribute to monitoring and enforcement without unduly impacting their business operations.

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