Meta, the parent company of Facebook and Instagram, has initiated a High Court challenge against the UK media regulator Ofcom, contesting the fees and penalties imposed under the Online Safety Act. This law, which became effective in July 2025, aims to safeguard users from harmful online content, with operational costs covered by major technology firms. The dispute centres on the fee structure, which is determined by a company’s global revenue, impacting firms that generate over £250 million annually.
Fee Structure Under Scrutiny
The regulations implemented in September stipulate that Ofcom’s fees are calculated based on a company’s qualifying worldwide revenue, a move that has raised concerns from Meta. The tech giant argues that Ofcom’s methods for assessing these fees are “disproportionate,” suggesting that the financial burden falls unfairly on a select few companies. In its legal filings, Meta’s counsel, Monica Carss-Frisk KC, expressed that the current approach is “troubling,” as it results in a small group of firms, notably Meta, shouldering the majority of Ofcom’s expenses, despite the law’s intention to encompass a broad spectrum of online services provided in the UK.
Carss-Frisk also emphasised that the calculation of qualifying worldwide revenue lacks a direct correlation to earnings from services specifically offered in the UK. This raises questions about the fairness and legality of the fee structure as it stands.
The Stakes of Non-Compliance
Under the provisions of the Online Safety Act, companies that violate safety regulations could face fines reaching up to 10% of their qualifying worldwide revenue or £18 million, whichever amount is higher. Meta is additionally challenging how penalties are calculated in instances where multiple subsidiaries under a single parent company are found jointly liable for infractions. This aspect of the law may have significant implications for the operational strategies of major tech firms as they navigate the complexities of compliance.
During a preliminary hearing held in London, it was revealed that Epic Games, the developer behind Fortnite, and the Computer and Communications Industry Association are poised to seek permission to join the proceedings. Mr Justice Chamberlain acknowledged the case’s broader implications, confirming that the next stage of hearings is set for June, with a full hearing anticipated in October.
Ofcom’s Position
In response to Meta’s challenge, a spokesperson for Ofcom stated that the regulator’s methodology is based on a straightforward interpretation of the law. The spokesperson expressed disappointment at Meta’s objection to the payment of fees and potential penalties, which are calculated in accordance with this interpretation. Meanwhile, a Meta representative reaffirmed the company’s commitment to working constructively with Ofcom during the enforcement of the Online Safety Act but insisted that penalties should reflect revenues generated by regulated services within the countries they serve. They asserted that this would still enable Ofcom to impose significant fines, potentially the largest in UK corporate history.
Why it Matters
This legal battle between Meta and Ofcom underscores the ongoing tensions between regulatory frameworks and the tech industry’s operational models. As companies grapple with compliance in an increasingly regulated online environment, the outcome of this case could set a critical precedent for how fees and penalties are structured under the Online Safety Act. The implications extend beyond Meta, potentially reshaping the financial landscape for all tech firms operating in the UK and influencing regulatory practices worldwide. As the court navigates these pivotal issues, the future of online content regulation hangs in the balance, affecting not only corporate strategies but also the safety of users across digital platforms.
