Meta Challenges Ofcom Over Online Safety Act Fees
Meta, the parent company of Facebook and Instagram, has initiated a legal challenge against the UK media regulator Ofcom in the High Court concerning fees and potential fines introduced under the Online Safety Act.
The Online Safety Act, which came into effect in July 2025, established protections against harmful online content. It also mandated that Ofcom's operating costs for enforcing online safety be funded by technology companies.
Under regulations introduced in September, fees are calculated based on a company's qualifying worldwide revenue and apply to firms with annual earnings exceeding £250 million.
Meta has criticized Ofcom's methodology for calculating fees and penalties as "disproportionate," while Ofcom has stated it will "robustly defend" its approach.
Meta's challenge targets rules applicable to search engines and platforms that allow user-generated content, including social media sites.
Legal representatives for Meta argue that the regulations are unlawful and should be reconsidered by Ofcom.
Monica Carss-Frisk KC, representing Meta, stated in court documents that Ofcom's approach is "troubling" and results in "a handful of 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."
She further contended that the calculation of qualifying worldwide revenue is not specifically linked to earnings derived from UK services.
Under the Online Safety Act, companies found in breach of safety rules may face fines up to 10% of qualifying worldwide revenue or £18 million, whichever amount is greater.
Meta is also disputing the method by which penalties are calculated when multiple companies owned by the same parent organisation are jointly liable for breaches.
At a preliminary hearing held in London on Thursday, the High Court was informed that Fortnite developer Epic Games and the trade body Computer and Communications Industry Association are expected to seek permission to intervene in the case.
Mr Justice Chamberlain acknowledged that the dispute raises issues "of wide public importance" and confirmed that the next hearing is scheduled for June.
A full hearing is anticipated in October.
In a related legal context, Wikipedia lost its own challenge against the Online Safety Act last August concerning age verification requirements.
An Ofcom spokesperson stated that the regulator's approach is 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," the spokesperson said.
A Meta spokesperson affirmed the company's commitment to "co-operating constructively with Ofcom as it enforces the Online Safety Act."
"Penalties should instead be based on the revenues generated by the services being regulated in the countries where they operate. This would still allow Ofcom to impose the largest fines in UK corporate history," the spokesperson added.
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